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What Is Personal Finance Skills, The Importance of Personal Finance Skills

 

What Is Personal Finance Skills, The Importance of Personal Finance Skills

What Is Personal Finance Skills, The Importance of Personal Finance Skills

What Is Personal Finance Skills, The Importance of Personal Finance Skills

Personal Finance Skills

The key to getting your finances on the right track is using skills you likely already have. It’s also about understanding that the principles that contribute to success in business and your career work just as well in personal money management. Three key skills are finance prioritization, assessing the costs and benefits, and restraining your spending.

 
  • Finance Prioritization: This means that you can look at your finances, discern what keeps the money flowing in, and make sure that you stay focused on those efforts.
  • Assessing the Costs and Benefits: This key skill keeps professionals from spreading themselves too thin. Ambitious individuals always have a list of ideas about other ways that they can hit it big, whether it is a side business or an investment idea. While there is a place and time for taking a flier, running your finances like a business means stepping back and honestly assessing the potential costs and benefits of any new venture.
  • Restraining Your Spending: This is the final big-picture skill of successful business management that must be applied to personal finances. Time and again, financial planners sit down with successful people who still manage to spend more than they make. Earning $250,000 a year won’t do you much good if you spend $275,000 annually. Learning to restrain spending on non-wealth-building assets until after you’ve met your monthly savings or debt reduction goals is crucial in building

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