July 2, 2022

visitmap.info

Blog News Combo

4 Reasons to Learn Financial Management, Can Make You Rich Quick

In recent years, the term financial freedom or financial freedom is increasingly being voiced by people in the financial world. Actually, this term is not something new anymore. Because basically, since long ago everyone wanted a stable financial condition and could guarantee their life in the long term.

However, unfortunately there are still many people who do not understand how to manage their finances properly, causing various problems in the long term. One of the biggest consequences of financial management failure is childbirth sandwich generationwhich sadly still often happens in Indonesia.

To solve this problem, you need to learn about personal financial management. Here are 4 reasons why you need to learn financial management as early as possible.

Stable and guaranteed finances

Good financial management makes you accustomed to writing a record of expenses and income per month. With this, you can control your personal cash flow so that your financial condition is more stable. So at least you can guarantee that your income can be sufficient until the end of the month. In addition, you can also allocate emergency funds for insurance and other sudden needs.

Have good financial intelligence

Financial intelligence includes the ability to manage finances and techniques to make money work for us. You can also better understand the considerations that must be considered before making a financial decision. This will keep you from debt default (failure to pay debts), bankruptcy, and other financial problems.

Can have passive income

For people with high salaries, financial management skills can allow you to have a variety of other sources of income, including: passive income. You can choose various types of investment instruments or bonds that are promising. For people whose salaries are still around the minimum wage, you can learn to manage mutual funds with a smaller nominal value, of course, based on the financial sciences you have learned.

See also  5 Reasons Why Students Must Use Cloud Storage Technology

Safe retirement fund

The benefit of long-term financial management is to prepare a retirement fund where at a certain age we no longer want or can’t work anymore. If we manage our finances well during our productive years, in the future we can have sufficient funds to pay for old age.

Those are 5 reasons why you should learn financial management. What first step do you want to take from now on?