Managing Your Personal Finances

Managing Your Personal Finances

Length: 734 words (2.1 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓

Most individuals are not proficient at managing personal finances. Although, management an easy task, usually only for some people who have the experience with managing their finances. In contrast, others find it a daunting due to lack of knowledge. Because, the economy have transfigured drastically since the1980’s, and the cost of living, insurance rates, and interest rates on student loans have all increased along with health care having doubled, managing money well has become more difficult. Therefore, it is imperative to acquire the skill of managing one’s personal finances. Through budgeting, saving and advice from a financial planner will ensure any individual financial success and stability.
As an accountant, I know the key to gaining control over personal finances requires a realistic budget be in place. A budget involves several important steps. First, total all sources of monthly income; second, prioritize expenses from most important to least like, mortgage, loans/cost, and automobile, utilities to cell phone and cable expenses. Finally, measure the monthly income versus total amount of expenses. If the monthly expenses are more than income received, this signifies living beyond one’s means. Most people should understand that “Budgeting, either by a formal or informal plan, is a first step in deciding what needs and wants must be meet and what resources are available” (Brown, 2007, p. 316). After all, conquering financial stability gives one the ability to control savings, as well. However, setting a budget is only the beginning of structuring finances. In order to uphold a budget one must stay focused on their needs instead of wants. This focus is often extremely difficult to gain or maintain.
Bad spending habits for long periods make controlling finances complex at times. Compulsive shopping, obsessive credit card shopping, and over spending are all bad spending habits. In contrast, learning from experience, good and bad can be the best teacher. In my mind, the triggers of bad spending habits are due to easy access of cash, misuse of credit card, and compulsive shopper, as well. First of all a person has to identify what influence bad spending habits. Next, analyze ways to correct the problem. Finally, develop a plan to prevent over spending. Recognizing how financial mistakes were easily done will help better understand how to avoid the monetary miscalculations in the future. Most consumers have a savings account for emergencies, like unexpected medicals bills, a change of resident, or decrease in one’s pay.

How to Cite this Page

MLA Citation:
"Managing Your Personal Finances." 30 Mar 2020

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Managing Your Personal Finances Essay

- 1. Numerous fake check scams occur each year. Information and videos are available at Write up a report on what you discovered at this site. Throughout the years millions of people are scammed from fake checks. “73% of banks reported check fraud losses in 2010, totaling approximately $893 million”( Fake check scams may include: overpayment scam, lottery scam, and work from home scams. All of these checks are fraudulent and cause people to lose thousands of dollars....   [tags: Credit, laws, Finances, Check Scams]

Research Papers
944 words (2.7 pages)

Managing Personal Finances Essay

- Managing Personal Finances Managing personal finances is an important skill to acquire. However, no where in school is this subject taught. As a result of a lack of preparation, our society is subject to a high percentage of people who lack financial success. Those who are successful at managing their personal finances will find that they are successful in many other areas as well. To learn how to manage personal finances there are books and web sites that provide a step by step guide to successfully managing personal finances....   [tags: Argumentative Persuasive Essays Finance]

Research Papers
789 words (2.3 pages)

Essay on Personal Finances : A Major Issue Within The Department Of Defense

- Introduction Personal finances are a major issue within the Department of Defense (DoD). Statistically the younger service members are the one’s with the most incidents of financial problems. The DoD is aware that this is a serious problem and has funded and commissioned many educational and training programs as well as counseling to help teach and assist the brave men and women who serve our country. The problem isn’t the lack of resources; it’s a lack of marketing these resources and preemptively preparing these service members before they run into financial problems....   [tags: Investment, Personal finance, Finance, Army]

Research Papers
1113 words (3.2 pages)

Essay about Managing Your Finances During The Great Depression

- Do you think the average Joe is really in a position to retire early. Most of us work our guts out full time and we can barely even make ends meet. Some of us can not even earn enough to pay for the bare essentials. If this sounds like you, believe me, you are not alone. Take the USA for example, for the past 18 months people have been spending $1.10 for every $1.00 that they earn. Spending like this has not occurred before, not even during the Great Depression. If you are spending more than you are making, you are certainly not on the path of those who want to retire early....   [tags: Pension, Retirement, Investment, Finance]

Research Papers
883 words (2.5 pages)

Personal Development Essay

- Many people work very hard in their life but they do not seem to be able to achieve something worthwhile (Personal Goal Setting, 2013). Successful people on the other hand, know what they want and create plans to help them achieve these goals. They will establish a step by step plan, and will continue to follow that plan until their goal is achieved. These people tend to be proactive rather than be reactive. Personal planning is really important because it helps you not only to achieve your goals but to tell you how you can achieve them....   [tags: success, personal finances, goals, planning ]

Research Papers
1180 words (3.4 pages)

The Importance Of Finances And Advice On The Future Finances After College

- In this interview what was covered was the importance of finances and advice on what the future finances after college, starting life on your own. She stated that a weekly budget is better than a monthly budget because with a weekly budget you can adjust throughout the month. She gave the example that if you are paid 600 dollars a month, then you add up all the incoming bills for that week and subtract it to the incoming money. What you have left over from that can be applied to gas, and groceries for the week....   [tags: Debt, Credit card, Bank, Payment]

Research Papers
731 words (2.1 pages)

Obtaining A Credit Report Is Crucial For A Person 's Finances Essay

- ”According to a recent Google Consumer Survey conducted by TransUnion, one third (32.7 percent) of Americans surveyed said they have never checked their credit report or credit score. Another 24.6 percent surveyed said they had not checked credit report or credit score in the last year” (Transunion). In a data-driven world, a person’s credit file is like their reputation, and bad information can have a great impact on their finances. A credit report is the gathering of information about how a person interacts with credit, such as how many accounts a person has and their payment history....   [tags: Credit score, Credit, Personal finance]

Research Papers
869 words (2.5 pages)

Essay on Annotated Bibliography On Personal Finance

- Annotated Bibliography Darci Deakin Utah State University Annotated Bibliography Aldridge, A. (1998), Habitus and cultural capital in the field of personal finance. The Sociological Review, 46: 1–23. doi: 10.1111/1467-954X.00087 This article was one that I found rather interesting and think my audience of young adults will find it interesting as well. Although it was an article that focus on research related to personal finance, it did not give general information on how person finance will benefit them and how to better help people manage their money....   [tags: Finance, Personal finance, Investment]

Research Papers
1577 words (4.5 pages)

Personal Finance : A Important For All Times Essays

- Personal finance is so important for all times in your life. It 's especially important in your twenties because while the mistakes you make are ones you can recover from, you don 't want to spend your 30s and 40s fixing the screw-ups from your 20s. As a bride-to-be or a young wife, family planning and wedding planning can be pretty costly. Don 't allow the frenzy and excitement of either make you lose sight of your finances. Consider these 15 personal finance moves that are good to make before you turn 30....   [tags: Investment, Finance, Personal finance, Bank]

Research Papers
1016 words (2.9 pages)

Essay about Database Security : Managing A Database

- DATABASE SECURITY Managing a database in today’s information age remains is challenging. Add to it, the fact that databases are amongst the most critical assets for an organization. They hold critical and at times sensitive information, furthermore in recent years as every type of imaginable transaction happen through the use of computers and transactions has to be managed and stored somewhere. Today regulations and legislations related to data or database security dictate that all kinds of security breaches should be reported, it’s easier said than done (Gertz, 2007)....   [tags: Access control, Computer security, Security]

Research Papers
706 words (2 pages)

Having a “Rainy day” or emergency fund, “This is especially important when it comes to your emergency. It is so easy to write a check that dips into your emergency fund, which will defeat the original purpose” (Ramsey, 2010, p. 13). A person must an emergency place in and, insurance to survive through life emergencies so, correct usage and restraint are critical demands for maintaining an emergency fund, because of unexpected emergencies. A person will also have a peace of mind knowing their funds are in a safe and secure place. Above all, making it a priority to save is essential to one’s future.
Seeking a Financial planner is a smart financial decision for individuals setting long-term goals like, investing, planning retirement or managing one’s finances. A financial defines as a practicing professional that helps create a financial plan for people, covering various aspects of personal finances. For instance, when a person receives a significant amount of money due to a job promotion, retirement, or winning lottery a financial planner can give any person direction on how to manage one’s finances. Still having a financial planner can be expensive in many places, “Most individuals do not have terribly complex financial lives, nor should they need to spend several thousands of dollars to get the financial advice they need” (Bernard, 2013, p. B1 [L]). When choosing a professional to handle one’s finances, In order to find someone that is trustworthy, and one can confide in, shop around before making any final decision. Nevertheless, once a person does become financially successful, there are few better steps in maintaining financial health and stability than investing in the advice of such a financial planner.
Planning, and managing one’s finances are one of the most important skills in life everyone must acquire; due to managing finances has become progressively complex. After all financial planning, saving, and budgeting is a smart decision that will pay off in the future. Saving early in life will be rewarding forthcoming as well.

Effective money management
Brown, B. J. (2007). Financial literacy. In B. S. Kaliski (Ed.), Encyclopedia of business and finance (2nd ed., Vol 1, pp. 315-317). Detroit: MacMillan Reference. Retrieved from Gale Virtual Reference Library.
Bernard, T. S. (2013, July 27). A start-up aims to bring financial planning to the masses. New York Times, p. B1 (L). Retrieved from New York Times database.
Ramsey, D. (2010). The Money Answer Book. Nashville, TN: Thomas Nelson. 

Return to