What Are Some Common Misconceptions You See About Personal Finance? Essay

Despite the importance of finance, accounting, and consumer intelligence, these topics are typically neglected in high schools. Unfortunately, personal finance is often learned by trial and error. The problem with this method of learning is that it only takes one costly financial mishap to set you back for years. This is why I created a basic personal finance book for total beginners. With these concepts you can use the other books in the Smart Money series to further build your knowledge of personal finance topics.

The author of this book, Dave Ramsey, is a man who has gone through many struggles in his life. Throughout his book he talks about the times when he went bankrupt and couldn’t provide for his family. Dave Ramsey sat down and wrote a plan on how to be smart with your money. Ramsey says, “The principles are not mine. I stole them all from God and your grandmother” (xi). He talks about how these are not new ideas and that these are not theories because they are proven to work every single time. The central concept of this book is to help people succeed in life with money but also their personal relationships. Ramsey wants to give people hope and happiness by playing a small role in their financial freedom.

I agree that money leads to happiness because if you don't have money you can't buy things, you can't go out and do things like go on vacations and do things just to have fun.

Whew, where to start? The personal finance class through Dame Ramsey’s Foundations in Personal Finance textbook and video series really had a lot of useful information, and it is hard to pick out the most impactful chapters and topics. However, I think the most important stuff for me was his five foundations for financial success, which were reinforced throughout the course. I am not downplaying the other important stuff in the course, including learning about the history of credit, budgeting, consumer awareness, investing, insurance, and taxes, but I think that mastering the fundamentals is important, which is why I am choosing to highlight them in this paper.

Money is a main worry for some people. It is a necessity for anyone who is trying to succeed in life. Many believe that the only way to success is to have a

This course provides an overview of the elements necessary for effective personal financial planning and the opportunity to apply the techniques and strategies essential to this understanding. Primary areas of study include creating and managing a personal budget, understanding and paying taxes, working with financial institutions, wise use of credit cards and consumer loans, financing automobiles and homes, and the use of insurance for protecting one’s family and property.

In the article, Advisors Involved in Financial Planning, authors Mendlowitz and Kess talks about how financial advisors are people oriented and want what is best for their clients. The authors prove that the difficulty of the financial advising processes is typically overlooked by others by stating, “The different kinds of financial advisors and their role in the overall financial planning process is difficult” (Pg.66). Many might think that financial advisors have an easy job, but there is more to it than telling people to save small amounts of money here and there. Advisors must go through several specific steps to figure out the exact amounts their clients must save. The author of this article talks about situations that a financial advisor might go through as well as how the advisor should

The goal of this course is to get you thinking about personal finance issues at a point in your life when you still have time to benefit from the power of time in generating wealth to accomplish your other life goals. The financial decisions you make early in life with determine in great extent the quality of life you will enjoy later, especially given the turbulent and uncertain economic conditions. Money isn’t everything, but a lack of it will impact almost every aspect of your life and those who surround you.

Does Money Buy Happiness? Studies over the last 10 years have shown that life experiences gives people lasting happiness and memories. There are two types of happiness: the measure of the quality of one's life, and how often one experiences positive emotions such as joy and affection. People in the top quartile for annual income have self-reported higher quality of life happiness than those in the bottom quartile, but about the same emotional happiness. Money can be used to purchase things ranging from physical objects to an experience.

“Money has never made man happy, nor will it, there is nothing in its nature to produce happiness. The more of it one has the more one wants.” Benjamin Franklin.

"Money has never made man happy, nor will it, there is nothing in its nature to produce happiness. The more of it one has the more one wants." - Benjamin Franklin

Having money creates a life with less worry. In society today, having a high paying job is a social norm. The convenience of being able to acquire anything whether it be traveling to Paris,

Landau states that “more money does not necessarily buy more happiness, but less money is associated with emotional pain” meaning money is materialistic and in the long run will not effect long term happiness (Landau 2). Money will buy you something materialistic that will be temporary in your life but after time fades you will eventually get bored until you find something new although it might have left you with some good memories and experience.

We all have heard the phrase “money can’t buy you happiness.” That phrase is a lie because mostly everything in today’s society revolves around money. The things people like revolve around money too. What a coincidence? Let’s say a person is upset so they go buy their favorite ice cream because they know it will make them happy. That person had the money to invest in something that made them happy. Or on an even bigger let’s say someone has been fantasizing about a car and they finally get enough money to purchase their dream car. This person is likely to be very happy. If it was not for the money, they would not have gotten that dream car, so basically the money made them happy. The truth is money makes people happy.

There are many people claim that there is not any relationship between money and happiness. However, I believe that there is a direct relationship between money and happiness. Research shows that being able to provide our basic needs and higher-level wants leads us to a happy life. The relationship between money and happiness is like the relationship between food and body. “The importance of money in human life is similar to the importance of food for the body. Just like you can’t live even for a few days without food, you can’t survive for long without money.”(Singh, 2015).Having access to our necessities, being able to participate in leisure activities, and being able to help our friends, are things which make us happy; and we need money for having them.So, for being happy in our life,