The way people manage their personal finances has changed drastically in recent years with the emergence of technology and a greater emphasis on financial literacy. With the advent of apps, online banking, and an array of other digital tools, financial management has become easier and more accessible than ever before. Yet, today, there is more personal debt than ever before in our complete history?!
In addition, education about financial concepts has become much more widely available, allowing individuals to make more informed decisions about their financial health. Yet, we live in a “YOLO” mindset when it comes to spending?
In this article, financial boffin Lodewys Uys, will discuss the changing nature of personal financial management and how these changes can be used to benefit individuals and their financial goals. The first major change in personal financial management is the increased accessibility of digital tools. With the rise of technology, individuals can now manage their finances from the comfort of their own home. Apps like Mint and Personal Capital allow users to track their spending, set financial goals, and even get advice from financial professionals.
In addition, online banking has made managing accounts and transferring money much easier, allowing individuals to keep everything in one convenient location. This might be a downfall for certain people – as making it easier to spend, doesn’t necessarily help with containing and sticking to a budget. But, some of these tools have made it possible for individuals to take control of their finances and make informed decisions.
The second major change is the increased focus on financial literacy. With more education and resources available, individuals are better equipped to make sound financial decisions. Financial literacy courses are now being offered in many educational institutions, allowing individuals to learn the basics of budgeting, investing, and debt management.
Furthermore, organizations like the Financial Planning Association are helping to promote financial literacy by providing resources and tools that individuals can use to make informed decisions. By learning the basics of financial management, individuals can better manage their finances and reach their financial goals.
The third and most recent change is the rise of social media. Social media sites like Facebook, Instagram, and Twitter provide individuals with the opportunity to connect with others and share financial tips and advice. This has made it easier for individuals to seek advice and stay up to date on the latest financial trends. Additionally, financial advisors are now using social media to reach more clients, allowing individuals to get personalized advice and guidance. In conclusion, personal financial management has seen several changes in recent years that have made it easier and more accessible for individuals. With the emergence of technology and a greater emphasis on financial literacy, individuals are better equipped to make informed decisions about their financial health and reach their financial goals.
All of these tools are readily available, but still we struggle as a society to shorten our time to retirement. We trust the conventional timeframe and seldom challenge the status quo. People are struggling with personal finances for a variety of reasons. Some of the most common causes of financial difficulty include an inability to earn a sufficient income, poor money management skills, high levels of debt, unexpected expenses, and inadequate savings. Additionally, economic and health crises can lead to financial hardship. With all these tools and engines, how can we be in control of our finances? It comes down to one word: accountability. Research shows that people who have strong social relationships have a 50% greater likelihood of being alive at the end of an 8-year study, compared to those with fewer social relationships. Imagine what a lifetime of accountability can do for you!
According to a survey by TD Ameritrade, almost half (45%) of Americans who have identified financial goals are more likely to achieve them when they are held accountable. Additionally, 71% of respondents said that having a person to be accountable to would increase their chances of success when it comes to financial goals. In addition, a survey by MoneyTips found that 82% of respondents said that having a financial plan and budget
was key to keeping their financial goals on track. By holding oneself accountable for their financial goals and decisions, individuals are more likely to reach their goals and maintain financial stability.
In closing, it is important to have a good understanding of the tools and techniques available in order to make informed decisions and to ensure long-term success – but at the same time couple this with an accountability partner. With the right strategies in place, it is possible to reduce risk and maximize financial return. Taking the time to understand the basics of financial management is an investment worth making.