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Simple Steps How To better Manage Your Personal Finance

Updated on May 9, 2014
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What is financial management? Mention of the terms ‘Financial Management’ quickly brings into mind ‘Money’. That is one of the biggest mistake even some so called financial experts make. Financial management is not just money and if you think it is, you terribly miss the ‘Management’ bit which is the core concept of financial management.

Finance basically refers to money. OK, we got that right in the first place when we thought about money with the mention of the terms financial management. But you see, the term ‘Management’ is attached to the term finance. Management again comes with its own definition. To manage simply means to control something in a way that is satisfactory. So in our case here, financial managemt means controlling your money in way that makes you satisfy. Satisfy in the sense that you are able to control how much you earn and how much you spend on certain things and that you still have some money in your account at the end of the day.

Our life now

Living on a fast lane
Living on a fast lane | Source
Not too fast dude
Not too fast dude | Source

We are living in an era where everything tends to move fast. Most people today live life in a fast lane without realizing it. As we move fast, we tend to over look basic things in life that make or break our lives. One of them is financial management. Managing your personal finances is a wonderful way to get ahead in life. Many people find financial management to be overwhelming, but it does not have to be. It is important to learn simple steps to make your adjustments much easier.

Is it necessary to write this hub?

There are numerous hubs written about financial management and little precisely on personal financial management. I don't intend re-invent the wheels. I don't disagree or even agree. What is published already on personal financial management took a lot of effort in research and I truly commend that effort.

My only intention here is to add to the pool of knowledge we already have on personal financial management but in a more practical and easy to understand manner with less technical jargons complimented with my personal experiences.

So let's see where you should begin, and we will work from there.

Detail Definition Of Financial Management

Financial management is that managerial activity which is concerned with the planning and controlling of your financial resources. Planning ,directing, monitoring, organizing and controlling of the monetary resources of you have.

We are talking about personal finance. The similar definition applies to business as well.

From the definition above three things become apparent.

1. Financial planning

2. Financial control

3. Financial decision making

Financial planning

Planning plays an integral part in success at any area in life. Financial success is no exception. Those that succeed in their personal life or business in terms of finance are those that plan their finance well. You have to have a realistic budget out lining your sources of income and expenditures. You have to know and differentiate between wants and needs when it comes to using your money.


Financial Control

Financial control is a critically important activity to help you ensure that you operate according to your personal budget limitations whilst meeting your financial objectives. Financial control has to do with your personal asserts and how effectively used. Do you follow your budgets when doing your shopping or you just go and buy o impulse?


Financial Decision Making

This refers to your decisions on things that you desire and want to buy and own or use. Every day you are faced with the decision to buy of not to buy. You faced with the economic concept of Opportunity Cost every day. Your personal financial decisions can make or break you. Being self disciplined and going by your budget is the simplest way to prosper in your personal finance.


Hold on a moment, how do you understand financial management?

What instantly comes to your mind when you hear the terms financial management?

See results

10 Simple ways to save money

They may sound simple enough but if you take a closer look at your financial status, few of this things cost you a big time in the long run.

If you can drop some of them, great! You may ask me why? My simple answer is "You will save extra money"

Care to save few cents or dollars to put to other more useful future investments? Check my simple list below

Some tricks to manage your personal finance

I assume you have a better background knowledge on financial management now. Great! We will take it down a bit more and talk about it at your personal financial level. Here we are not much concern about business finance. Let alone the executives of your employer worry about how much to pay you. What we are concern about is how you going to spend your money after your bosses ends you your fat or skinny cheque.


Step 1: Ditch the paper

No need to buy new paper products every now and then. Use cloth napkins, mop up spills with dishcloths and rags, write shopping lists on the back of junk-mail envelopes, (and stick your coupons inside).

Step 2: Give up bottled water

Give up bottled water; almost 40 percent of it comes out of the tap anyway. If you don't like the taste of your local water, use a filter.

Step 3: Buy less food
Buy what you can or drink eat and finish it. Don't buy extra

Step 4: Cut the phone line

Get rid of your home phone if you have a cell phone.

Step 5: Cancel your gym membership

Cancel your gym membership. Jogging, stair-climbing, jump-roping, hula-hooping, and dancing are all free, and that's just a partial list of what you can do to stay fit.

Step 6: Forgo the fast food

Forgo the fast food. If you really have a hankering, recreate the meals at home; all those "secret" recipes are online.

Step 7: Drop cable

Drop your cable subscription. More and more television shows are available online, and you can even hook your computer up to your TV set for the ultimate viewing experience.

Step 8: Do not buy clothes you wont use frequently

Step 9: Don't buy new jewelry

Use old jewelry until they are totally damaged

Step 10: Cut down on supplements

Get rid of unnecessary vitamins, unproven supplements, and worthless cleansing or fasting products. Ask your doctor what you should be taking.


I live you with a video on personal financial management

Better things ahead

If you can manage your finance well, who knows you could be the next person owning one of the things shown below......Never Ever Forget this. A tree grows from seed. So are dollars from cents.

Start small and be committed to grow and prosper.

A dream women

Beautiful women
Beautiful women | Source

Your dream man

hand some hot dude
hand some hot dude | Source

A car of your dream

A car to die for
A car to die for

Dream house

Luxury house
Luxury house | Source

Hope you enjoy reading and learning from this hub

If you found the hub useful, lets us have your comment..If its useful and interesting, let me know. Even if you found it boring please also let me know. With your feedback, I can tailor the hub to suit your preference.



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    • Ian Dabasori Hetr profile image
      Author

      Ian D Hetri 2 years ago from Papua New Guinea

      Thank you all for you time. Hope you pick up something useful in my hub.

    • profile image

      Ada Lambert 2 years ago

      i have learnt a lot from this spread it always iam ready to adjust to make better living

    • profile image

      Ezequiel 2 years ago

      I carry on listening to the nescsawt lecture about getting free online grant applications so I have been looking around for the most excellent site to get one. Could you advise me please, where could i find some?

    • profile image

      Bill 2 years ago

      I am now not sure the place you are getting your info, hweover great topic. I needs to spend some time studying much more or understanding more. Thanks for wonderful info I was looking for this info for my mission.

    • schoolgirlforreal profile image

      schoolgirlforreal 2 years ago from USA

      Cool hub. Putting things into perspective. Thanks

    • Ian Dabasori Hetr profile image
      Author

      Ian D Hetri 4 years ago from Papua New Guinea

      Thanks Dan. Keep going hard.

    • Dan Kutuapi profile image

      Dan Kutuapi 4 years ago from Papua New Guinea

      Ian:

      Voted up and useful. Agree about life in the fast lane and what you refer to as the rat race in various other hubs. Found the video very interesting as it gave me a new perspective in managing my personal finance.

      Sincerely, Dan.

    • Ian Dabasori Hetr profile image
      Author

      Ian D Hetri 5 years ago from Papua New Guinea

      Personal financial management is one of the key measures to your financial security. Mess it up, and you mess your life.