The importance of money is undisputed for basic needs and essentials. You need money to sustain life, such as food, shelter, basic healthcare and an education. You use money to buy security and safety for your family.
This highlights the necessity to understand and be control of your own personal finance. The money you earn, save and invest for a better financial future is your own responsibility — you have to ensure that your “leftover” suffice from the day you retire till the day you expire.
The younger you start taking serious actions for your own personal finance, the higher probability you will be financially stress-free even after you retire.
Planning for the Future. All of us have major goals in life, whether it is for a wedding, to buy a home, for children’s education etc. The cost to fulfill these major goals are unlikely to happen overnight. To ensure that you have sufficient funds to achieve these goals, you should set and work towards clear financial objectives.
When we retire, some of us are probably at a stage where we cannot trade labour for money. You might be too old or ill. Ensure that you have enough to take care of your healthcare expenses and essential needs in your golden years.
To do all of the above, we invest — whether it is in your career, physical health, financial health, knowledge or just monies make more monies.
Treating money right. Money could be a double-edge sword. When used correctly, it elevates the well-being for you and your family. The steps to treat money right could be very simple. Protecting your money means to control the urge to spend unnecessarily items or only invest in instruments/markets you understand. Multiply your money by working out different income streams. When the net cashflow becomes positively high enough, you can live off the returns your money earns without trading your labor. You would then have the ultimate flexibility to do what you want yet meeting your needs.
Treat money well. Respect and use money well and it will empower you to pursue your dreams. By taking care of your needs, you can indulge in your hobbies or passion in life. The steps that we see above are not new. It has been repeated time and time again, but somehow the majority of them have not been internalised within us.
Conclusion. Money is something you will always need. While the building up of good personal finance habits may seem like a hassle, the potential positive outcome more than justifies the effort of doing so.
Why wait to take charge and stay in control of your personal finance? Have you done your part today?