The Importance Of Personal Financial Management

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The Importance of Personal Financial Management
Personal financial management is one of the most important tasks every individual must undertake if he or she wishes to have a comfortable life without having to constantly worry about his or her financial future. Financial planning is the process of controlling what one does with his or her money in order to reach a desirable individual economic standing and to secure one’s financial future. This can include spending, investing and saving. There are many important steps in creating and executing a fiscal plan for oneself and one’s family.
Prior to taking this course, I knew very little about financial planning. I had seen many people create a budget, use credit, or even talk about investing for retirement, but I only had the slightest idea of how to do so I read once that eight out of every ten Americans is indebted (“Eight out of Ten Americans in Debt: Study,” 2015). After reading that article I thought that money management was going to be a tedious and strenuous activity since so many people have failed to manage their finances successfully. However, once I began this course and began using the same methods on my own finances, I realized that with a little planning, financial management is simple and can secure a better financial future for yourself.
The first chapter of this book, Personal Finance Basics and the Time Value of Money, opened my eyes to the important steps of managing one’s finances. There are a total of
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