Personal finance involves managing money and finances to meet personal goals through income, expenses, savings, and investments. The document outlines several basic principles for financial management including organizing finances, spending less than you earn, putting money to work, limiting debt, continuously educating yourself, understanding risk, diversifying income sources, maximizing employment benefits, paying attention to taxes, and planning for unexpected expenses. Additionally, it provides principles from Money Boss such as taking responsibility for your circumstances, prioritizing savings, focusing on both small and large financial wins, and balancing spending and saving.

1. Money
Management
Philosophy

2. List five(5) items or activities in the
center column that you plan to have
or to do soon. Go back and look at
each listed item or activity that takes
money. Put a check mark in the
NEED or WANT column. Write your
answers on a separate sheet.
Was this easy for you? Why or why
not?

3. What Is Personal Finance?
Personal finance is a term that covers
managing your money as well as saving and
investing.

4. Personal Finance Explained
Personal finance is about meeting personal financial
goals, whether it’s having enough for short-term
financial needs, planning for retirement, or saving
for your college education. It all depends on your
income, expenses, living requirements, and
individual goals and desires—and coming up with a
plan to fulfill those needs within your financial
constraints. But to make the most of your income
and savings it's important to become financially
literate, so you can distinguish between good and
bad advice and make savvy decisions.

5. Ten Basic Principle of Financial Management
1. Organize Your Finances
Organizing your finances is the first step
to creating wealth.
2. Spend Less Than You Earn
The best way to ensure that you either
overcome debt or avoid it in the first place
is to never spend more than you make.
3. Put Your Money to Work
Take advantage of the time value of
money.

6. Ten Basic Principle of Financial Management
4. Limit Debt to Income-Producing Assets
If you have to be in debt, stick to financing items
that retain their value over time, like real estate and
education.
5. Continuously Educate Yourself
Understand why you are investing so that you will
stick to your plan. Periodically gather research so
you do not miss excellent investment opportunities.

7. Ten Basic Principle of Financial Management
6. Understand Risk
The key to understanding return on investments is
that the more you risk, the better the return should be
7. Diversification Is Not Just for Investments
Find creative ways to diversify your income.
Everyone has a talent or special skill. "Turn your
talents into a money-making opportunity
8. Maximize Your Employment Benefits
Make sure you are taking advantage of all the ways
benefits can save you money by reducing taxes or
out-of-pocket expenses.

8. Ten Basic Principle of Financial Management
9. Pay Attention to Taxes`
We all know that any money you make is going to be
taxed. That is why it is important to consider the
related tax implications for every investment.
10. Plan for the Unexpected
Despite of your best efforts, you'll face unforeseen
emergencies.

9. Here are some personal finance principles from
Money Boss website.
☺ You are the boss of you. Your circumstances
might not be your fault, but they're your
responsibility.
☺ Nobody cares more about your money than you
do. The advice that others give you is almost always
in their best interest, which may or may not be the
same as your best interest.
☺ It's always best to be proactive. In life, there are
often default options. If you don't consciously and
deliberately choose something different, you get the
default.

10. ☺ Saving must be a priority. Most financial gurus
recommend saving 10% or 20% of your income.
☺ Small amounts matter. Frugality is an important
part of personal finance.
☺ Large amounts matter more. Practice thrift, but
always be looking for Big Wins.
☺ Slow and steady wins the race. The most
successful folks are those who work longest and
hardest at things they love to do.

11. ☺ The perfect is the enemy of the good. Don't
worry about getting things exactly right — just
choose a good option and do something to get started.
☺ Action is the cornerstone of success. Get
moving. Trust that you'll pick up momentum in the
future.
☺ Failure is okay. Don't let one slip-up drag you
down.
☺ Smart money management is more about
mindset than it is about math. Financial success
comes when you master the mental game of money.

12. ☺ You can have anything you want-but you
cant have everything you want.
☺ Financial balance lets you enjoy
tomorrow and today. You don't have to
choose between spending today and saving
for tomorrow. You can do both.
☺ It's more important to be happy than it
is to be rich. Don't be obsessed with money
— it won't buy you happiness

13. Review the credit scenario below and determine the
positive and negative impact the decision may have on
the person’s financial future.
Savanah has heard that opening a lot of credit card
accounts is a good way to build credit. She currently
has five credit cards, but is sometimes forgetful in
paying her bills on time and usually has a balance on
each card. Her favorite store is offering P 500 coupon
on her next purchase, with the promise of more coupons
in the future, if she opens a credit card. She decides to
open the store credit card to get the discounts.
Is this a good or bad debt move? Why? (Use a separate
sheet of paper for your response).