Importance of personal finance

1 Min Read
255 Words


We emphasize the importance of personal finance as a mechanism that will help individuals and families feel more at ease by properly managing their funds.

Likewise, the proper management of personal finances favors the economic growth of individuals and enables them to achieve long-term goals.

First, personal finance is defined as a discipline or technical group that is used to manage the economic resources of an individual or family. Through this tool, elements such as expense budgets, savings mechanisms or investment decisions can be developed over a period of time, taking into account the level of risk and the individual's or family's life elements.

Therefore, with the development of knowledge in the field of personal financial management, it is possible to make decisions that are beneficial to the economic well-being of oneself and one's family. This is the importance of personal finance in defining long-term goals. To do this, it is necessary to clarify the life vision and goals based on the well-being of two stakeholders:

In a family environment, personal financial management will become the basis for defining basic expense budgets. These basic expenses include food, clothing, transportation (in your own vehicle or public transportation), training, entertainment and children's entertainment and savings. cover unexpected cat expected

  • Individuals with knowledge of personal financial management can strengthen family decision making, consider long-term plans, such as investing to ensure future returns or additional income during retirement, and purchase real estate for appraisal purposes.*

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