The quality of your life largely depends on your ability to manage money and handle financial matters. Unfortunately, not very many people are capable of managing their resources successfully. While it is true that financial knowledge is important for everyone, it is not uncommon to see people overlooking it until they enter into their professional lives. This is why there is an increasing number of graduates who struggles to save and investing money while working actively for it.
When it comes to managing money and handling financial matters, it is unfortunate to note that even the people whom you must be looking up to such as your parents and teachers may be struggling with it the same way because of the poor educational system. It is not surprising that the educational systems of the countries around the world do not teach them anything about money having real-life applicability. You do not get enough financial education at schools and colleges unless you are a commerce or economics student or get yourself enrolled for the courses that may increase your financial knowledge.
One of the best ways to make good financial decisions is by hiring the services of an experienced professional. If you are not at all confident about your abilities to deal with money-matters, the services of a professional financial advisor may save your overall time and money. As per Canada based professionals such as Ferhan, having a professional on your side makes sure that you must not make any rookie mistake at the beginning itself. This is why; you must take some proactive steps to invest in yourself increasing your money managing abilities. Before getting started for it, you must be clear in your head that why you must have to increase your financial wisdom to keep yourself always motivated.
Below are some of the main reasons you must have the money- managing abilities to increase the quality of your life:
1) To Avoid Debts:
Money is necessary to live a quality life. Hence, it must be invested successfully to earn good returns or profits. Due to a lack of financial knowledge and control over money, there are times when you may need to take loans. With little to no knowledge of finance, the chances of you going bankrupt can never be ruled out. On the other hand, a person having financial knowledge is likely to get out of the money crisis easily.
2) To Set Realistic Goals:
It does not matter what kind of goals you have in mind to achieve, the money will always play a crucial role and hence, will always decide whether or not you will be successful achieving them. This is why being realistic while setting goals is important. Financial literacy helps you set realistic goals that can be achieved with a certain amount of budget or money in hand.
3) It Helps You Prioritize Your Financial Goals:
Prioritizing goals helps you stay focused on one goal at a time. You may wish to achieve many things in life and hence, you may get yourself completely disorganized, confused and inefficient working towards all of them. Prioritizing your goals make sure that what is important or urgent must be done at the earliest.
4) It Helps You Make The Right Budget For Yourself:
Your ability to spend wisely does depend on your ability to make the right budget for yourself. Having a budget before spending any amount makes sure that you must not overspend. As per the experiences of industry experts such as Patel, keeping all other factors constant, over 90% of the bankruptcy incidents are the results of poor budget maintenance on the part of investors. Hence, it helps you to maintain a balance between your expenses and earnings.
Financial literacy is important for the improvement of one’s quality of life. One’s ability to manage finances decides whether or not he/she will be able to achieve his/her financial goals. Unfortunately, schools and colleges have completely missed out on realizing the opportunities to impart financial education. This is why school and college pass-outs struggle to save and to invest money while working actively for it.
Hence, one must take proactive steps to get the right financial knowledge to avoid debts, set realistic goals, prioritize financial goals, and make the right budget for him/her. As per the experiences of industry experts such as Ferhan Patel, keeping all other factors constant, over 90% of the bankruptcy incidents are the results of poor budget maintenance on the part of investors. Hence, it helps you to maintain a balance between your expenses and earnings.