If you depend upon someone else for managing your money then you may never be able to learn to manage your funds. Instead of relying on others, take the charge. Learn to have fun and still save the money rather than blowing it off on your friends. Don’t depend on others for money related advices.
Here are a few reasons to make you understand why it is important to manage your finances on your own:
LEARNING TO HANDLE THE MONEY:
> You yourself know better that what are your future goals and priorities and how much you want to save for them. For example, if your parents manage your money for you then maybe they will ask you to purchase a house for yourself whereas you want to purse higher education through that savings. Got it? It not only about depending upon parents or losing your freedom. It is about learning.
INVESTMENTS AND FUTURE GOALS:
> You will realize that how much your investments can earn over a long period time, which will further motivate you to stash as early as possible. You will realize that simple cross cutting methods can slash months of slaving away at work desk. You will understand the dynamics of savings much easier way. You will start tuning your wealth to suit your dream of a comfortable retirement life.
FINANCIAL ADVISORS: DO I NEED ONE?
> Financial advisors can be helpful in managing your finances only and only if you are able to find a good one. Even if you were lucky to find a good financial advisor, having a sound experience of money management will allow you to reflect your knowledge to advisor which in turn will pay more attention to you rather than filling his pocket.
CHECK ON EXPENDITURE:
> All the time you spent over weekend parties, subscription you no longer want, more than enough internet connection, shopping thrice in a month with any dire need, all these expensive will be under check when you will start managing your finances. This will make you familiar with your own day to day expenses. You will realize the areas where you can cross cut and it won’t affect you much. The useless and unwanted costs will be avoided if you do it yourself.
ASSET ALLOCATION:
> How much are you willing to bet that someone else is interpreting your situation and will be beneficial to you? Whether that ‘someone’ is your financial advisor or your parent or your partner, it is you yourself which better knows the circumstances in which you are. You can be articulate and patient enough to relay all your needs. But when you depend upon someone else to manage your finances, this privilege is ‘eliminated’. If you are managing your finances on your own, than you can decide where and how to allocate funds and how to utilize your assets. This will ensure the best results.
CONCLUSION:
Managing your finances will involve you and your priorities. You can plan everything as per your need. Manage your expense will make you feel more independent and will boost your confidence. So, take the charge in your own hands and start managing all your funds on your own!
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