Financial management, often referred to as “controlling your money,” involves the processes of budgeting, saving, investing, and spending money. It entails creating a plan to ensure your financial resources are allocated and utilized effectively to achieve your financial goals.
Controlling your money is essential for several reasons. Firstly, it provides you with a clear understanding of your financial situation, enabling you to make informed decisions about spending and saving. Secondly, it helps you avoid debt and build your wealth over time. Thirdly, it provides you with peace of mind, knowing that you are in control of your finances and working towards your financial objectives.