In this current conditions we are facing, talking about personal finance is very annoying but also very relevant. For people who lose their job, or business which facing with failures it’s not a great topic to talk about.
For some people who still have a job, they want to know how they can save better and how they can gain more income on their side. The personal finance topic is never taught in schools, because teachers teach about theories and not practical one.
If at any point of our life, we taught ourselves about personal finance, we surely won’t make any mistakes about any choices in life. When you were an employee, and some stranger ask you to invest in the get-rich-fast business, you won’t even consider about that, but since you don’t know the principal of finance and how it can helps you in life, you will at some time, fall into their scam business traps.
In desperate moments like this, the eagerness to learn about personal finance starve people even more, and it’s really great to know how people changes perspective with suffering at hands.
So basically, personal finance is actions of managing your money and your financial decisions. It involves all personal financial issues such as saving, investing, debt management, insurance management, taxes management, and much more.
In other words, everything involves your personal money, money in your wallet, in your bank or under your pillow wherever they are, it’s the area of personal finance.
You might need to rethink about your decisions in managing your money in every phase of lie. There are some important things to consider which include cash flow, buying insurance, personal taxes, saving and investing, and of course your retirement planning.
It’s very much easy to do those thing in today’s world. There are a lot of tools you can use to plan your finance effectively.
There are a lot of times when things doesn’t work your way and you may face difficult financial times. These times are really hard times to face alone. It can affect you and people close to you very harshly. If you can create a plan, there’s always ways to deal with those difficult times.
Unemployment – You can be unemployed at some point of your life, don’t worry if you feels sucks. This times indeed very annoying times, because you might ended up homeless, or you can have parents, relatives, or friends to help you to get through this. Losing your job, savings, and then building up debt due to the unemployment situation, is a common problem.
Underemployment – People can find jobs, but they don’t pay enough for life, so it’s one of problem that you can’t take lightly since you still may not able to live a good life, but it’s better than nothing.
Illness – You can help it if you get illness. The costs to go to doctor and medical treatments would be so expensive, but if let’s say you work in a company with good medical benefit, it really can make difference in how you face your illness and the financial problem arise from it. At these times, you might regrets not having health insurances.
Live on Your Own – To get out your parent’s house and be on your own will be much more comfortable for you, but problem of not having enough money will be arise and you will be surprised on how much money you need to live on your own.
Children – This is surely will cost you a lot of money. It begins from the children’s necessities, health and education. You will need to take out more money if they have disability for example.
Divorce – I’m sure all of you understand that this is very uncomfortable moments, not only it cost you money but also your health and kids. This is kind of problem that you should avoid for the rest of your life.
Death – It’s quite a business for people who owns cemetery, priests, or people in the business. It’s different between cultures. Some culture might have to spend billions for the death of his closed ones, while the other just need small quiet ceremony which has small costs. But the desperate effect is not money but your mind conditions after your loved ones died.
Retirement – Do you hopes to retire someday? There are not many people has retirement savings, and for those who has savings, it’s just not enough. The changes in retirement plan can affect those who has this type of saving.
Consumerism – Well this is always bad for people who can’t measure up their financial capabilities. It will always be a huge problem in our society, and it will be there for long. People will keep spending money they don’t have.
You might face one or more of these experiences in your life at some points, but it can be managed as long as you can make a good planning. Think that when you face one of this experience, it’s probably because you are lack of knowledge about personal finance, but don’t worry, it still can be fixed with good knowledge and plan going forward.