Understanding personal finance
Get into action and gain the advantage!
Understanding personal finance can reveal the
benefits of planning. At least, in our case, we learned
this...
When Adriana and I started to research how to manage the
financial details of our family, we thought that all we had to
do was:
- Save,
- Keep our debts under control and,
- Buy life and car insurance.
In spite of knowing about finances and how a business should
be run, we were not prepared to run our personal finances. That's ironic, isn't it? Ironic, but true! So ridiculous
to work so hard to earn a wage and then not to know where your
money goes!
This is what led us to study the discipline of how to manage
our finances...
Reading and learning about financial planning was important
but even more important was starting our own planning.
It wasn't until we began to prepare our own balance sheet and
income statement that we can see our weaknesses. It was like getting a
financial physical.
Congratulations, because up to now you have learned all that
financial planning implies, you have made a general evaluation
of your financial situation and you surely now have an idea of
the areas where improvement is needed...
For this reason, it's important, if you wish to improve the
balance between your job, your personal life, your life style
and/or gaining independence, you now need to apply what you've
learned so far to your own life.
The following steps in this guide will help you apply your
knowledge of financial planning to your own situation.
Let's move onward!
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