Managing personal finances

1. Managing Personal Finances
Managing and budgeting personal finances is one of the most important skills that people have
to learn and master. Making wrong decisions hurts a person’s present and future. People should
start planning for their short and long term financial goals as early as during their college years.
However, most adults are unaware of the best ways to manage and budget their finances. This
paper aims to discuss the best ways to manage personal finances, so a lot of aspects were tackled
including the importance of early financial planning and use of modern technology to enhance
the results of sound financial decisions.
Students are early faced with the urge to manage their finances from the minute they think about
getting a student loan. The disability to manage finances at that early stage causes a negative
impact that lasts for long. Statistics prove that one in every 5 households currently owe a student
loan with a debt that is likely to be paid during a decade or more. Financially literate individuals
know the basic concepts related to managing money and different assets.
Personal spending trackers are useful devices that aid people in calculating their personal
financial transactions to have the right information for more informed decisions. The central
processing unit (CPU) stores information related to gaining money and spending it on finding and
highlighting patterns. CPU then directs the device to display this information in a visual analytical
representation that divides spending into different categories. Computer algorithms are
successfully used to identify patterns. These values are manually modified and edited until this
algorithm may process future data on its own. Such computer software programs are combined
with various tools and applications to track quantifiable financial information.
Students’ buying behaviour is currently affected by several factors including peer pressure and
social media patterns. Those who are under the influence of the group are more likely to end up
with credit card indebtedness. Compulsive buying patterns are likely to affect people’s decisions
and self-esteem. Offering continuous support and education helps people overcome problems
of falling victims to credit card schemes. This includes support from parents and peers
Emphasizing the right type of consumption is another way that helps people prioritize their
spending throughout different stages of their lives. Finding a better way to deal with stress or
frustration promotes the conscious way of dealing with money regardless of income obtained.
In order gain to gain a full understanding of the best ways to manage personal finances, it is
necessary to conduct a study that examines all aspects related to spending and saving. This
includes, but is not limited to managing educational loans, using technological devices, examining
social pressure and managing credit card debts. Information technology and new devices play an
important role and facilitate identifying spending patterns. As the world keeps on changing more
emphasis should be given to the factors that limit people’s ability to make sound financial
decisions.