This post is about the importance of personal finance in 2024. Financial wellness in 2024 is extremely important and below are some great reasons to try to convince you to ensure financial wellbeing
Introduction
Financial wellness 2024, money has become such an important thing. Everyone wants to become rich everywhere. Everyone wants to have the latest and the greatest iPhone. Everyone wants a piece of the most expensive real estate. But it is not as easy as it sounds. If it was everyone would have been rich by now. But the statistics don’t say so. Just 10% of the population of the world makes up more than 90% of the wealth in the world. And just a few hundred billionaires make up a huge chunk of even that.
So, why is it that we are not able to get there and make so much like them?
Here comes the important topic of financial management and wellness.
Financial Literacy for financial wellness 2024
Our formal education has taught us a lot of subjects from science, and math to history and even computer science. But there is a lack of an important subject in the schools which is financial literacy. People are making huge amounts of money but at the end of the month are broke. I always believe that only that person is rich who is financially literate. A financially literate person can plan his or her money perfectly even if the income is less. Whereas on the other hand, the financially illiterate person cannot do so. There is every possible way in the world now to lose all of your money easily. And the marketing is being done so nicely that we can get carried away.
Hence, we must learn how to do personal finance and know the limit on how much money we can blow per month, how much we can save, and how much we must invest in assets or for that matter even in ourselves to grow in life.
It is not a joke when people say they are broke at the end of the month and they have to take extra credit from their known ones to make ends meet. This does not happen only to normal people but can happen to rich people as well if not careful enough.
“A person who does not know how to manage money cannot save his money.”
Investment for financial wellness 2024
As I have talked about in the first paragraph, there are a few people who are crazy rich.They are financially well. They make up most of the wealth in the world. But, you might be wondering what work they do. How many hours do they have to work to make that kind of money? You do work a lot but don’t make quite as much. Here comes the concept of money working for us. As long as you work for money, it is quite unlikely to escape from the loop. If your money invested somewhere works for you and makes more money then it can be reinvested and made more money.
This is the concept of investment. There are few assets like stocks, lands, gold, etc when invested in will yield more money on your investment. But don’t mistake investment to be only assets. Investments can also be skills as well. It could be some course you bought or some degree you pursued by spending some money which can lead to higher pay and hence more money.
I will discuss more investment strategies and what to do to get the maximized returns on your money while playing it safe
In india the stock market is basically in two exchanges the nse and bse. You can read more about the stock exchanges here.
Debt
One of the most gruelling parts of our lives, taking debts fulfilling the emis, taking more debts and this is a vicious cycle. It is not our fault as we didn’t have sufficient money at the time to pay so we needed a debt. In my blog, I will be discussing how to tackle your debts and even save a lot of money while paying off your loans.
Emergency funds
In this period of recession, we might be losing our Jobs anytime and the pressure is even higher when there is a family dependent solely on us. Hence, it is so important to maintain an emergency fund to avoid anything bad happening. I will describe this in detail about emergency funds in further posts.
Conclusion
We have understood just how important financial literacy is and what bad things can happen if we are not cautious. Hence, we must gain more knowledge about personal finance to more fluidly manage our finances.
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