Skip to content Skip to sidebar Skip to footer

Why is money management important

Why is money management important - Because to anticipate unexpected financial risks in the future. Because life is sometimes uncertain, we really need to record every post of income, expenses, monthly budget, savings and debts.

Managing personal finances is sometimes not easy, some even argue that making money is easier than managing it. Most experts agree that managing personal finances is as important as making money itself.

Why is money management important

Most incomes are limited, but wants are unlimited. Therefore, good management is mandatory. Another thing that must be considered is whatever salary or income we receive, if we are not good at managing it, we can be sure that family financial problems will always arise.

Especially at this time, where the culture of consumerism is getting higher. Even if you have a lot of money, without good management, it is almost certain that the money will be wasted. Therefore, we must have good control over our own finances.

Financial management by writing down every income and expense in a financial post will provide direction and guidance in making your financial decisions.

This is because every financial decision taken will affect other financial posts. By understanding that every financial decision is part of the whole, you can consider getting your finances in order as soon as possible. You will also find it easier to adapt to a changing life and feel more secure because you are still on your planned financial path.

It is clear that the management of family finances is very important. The earlier we start managing and managing finances, the better and better our lives will be, both now and in the future. It will also improve our own financial performance.

Financial management will provide its own advantages in your life. With this financial management will:

Here are the Benefits Why money management is important

  1. Helping to give a real picture of your finances in daily life.
  2. Increase the effectiveness of your financial flows, both in acquisition and use.
  3. Take control of finances by preventing excessive debt.
  4. Make each of your financial decisions more focused and achieve the planned economic goals.

Can we make sure that we are still alive tomorrow so that our children live decent lives and are not abandoned?

Will we be healthy forever so that we can continue to work and earn? The answer: No one can say for sure. Nor can anyone guarantee that when you retire, you will still have an income that will allow you to live with the same quality as before retirement.

What we can do far more than ever before is to manage our finances well. One of them is by recording receipts, expenses, monthly budgets, savings, and debts. That way, we can immediately see the Surplus/Deficit with the finances and the balance sheet itself.

Conclusion :

So, when something unexpected happens from a financial perspective, at least we can anticipate it in advance.

You can also start managing (writing) and start setting aside retirement savings as early as possible. This is because we will not know for sure how the economy will turn out in the future.