How good are you at personal finance?

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Personal finance means control of all your money matter.  Have you ever wondered where all your money gone?  If you always ask this question, that means you are not good at managing personal finance.


Good management of personal finance means keeping good records, and analyzing historical data.  For a start, you can keep an accurate record of all the spending, including the can of soft drink you buy at the vending machine.


When you do that, you can analyze all the spending and see a pattern emerging.  You will be surprised to see how frequent you buy junk food.  You will be surprised at the amount of money that you waste on impulse buying.


Credit card statements show you similar record, except that it is not a complete picture of all your expenditures.


Knowing your weak point in money management is the crucial part of personal finance management.  You cannot improve unless you know where your weaker link is.


Personal finance is all about taking responsibilities.  That is why the word “personal” comes in front of finance.  That is why the term for managing your financial affair is “personal finance”.


You do not need to seek professional advice if you know your weaknesses, and know how to improve on it.


You can always search the Internet for sound advice on personal finance matter.  Rest assured that you are not the only one who needs to improve on personal finance management.  Many people are struggling with personal finance every day.  Many people are learning the hard way that personal finance management is so important.


You always hear of family breaking up because of money problems.  If both parties to the marriage can manage their personal finance well, they will have no problem handling family finance, and they will have no problem teaching their kids to manage money well.


Whether you are single or married, you have to start managing your money.  You have to learn to excel in personal finance management, before you can impart the knowledge to your family members.


Do take responsibility for the way you spend money and invest money.  You should not blame your parents for not teaching you.  You should not blame your teachers for not teaching you.  You should not blame the bankers for giving bad investment advices.


Personal finance is about you.  Even if you have not learnt anything about personal finance, and your financial is in a mess right now, you have to take responsibility.  That is why “personal” is the operative word in personal finance.  You can only blame yourself for not learning, and for not learning personal finance earlier.


It is never too late to learn about personal finance.  Do read more, learn more, and put into practice.  May you gain financial freedom through good management of your personal finance.

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