Why is Personal Finance important

We live in an ever-changing environment as compared to our parents. Things are changing at light speed and only the ones who are fit enough to adapt to the changing situations will survive this shift.

More options do mean more opportunities but most of us are easily overwhelmed when we have too many choices. There are so many different ways to make an income today. Nevertheless, the ways to drain that income are also too many. Our parents never used to spend on dresses as much as we do today. They never cared about the brands of sneakers worn as much as we do. They never cared about the cars they traveled or the food they ate or the houses they lived in. So are we wrong to do all of this? Absolutely not. It’s a blessing that we have so much with us these days.

The salaries have always been as per the lifestyle choices. Hence adults who earn 5x of what their parents earned are still somehow in more debt. So what is going wrong then? Is it that we are not smart enough. That can’t be the reason because we are able to evolve to technological changes right? The thing we are not able to control is our impulsive expenses. To understand this at scale, just calculate the number of years you have been working and how much you have in savings and investments combined. What percentage is it? While you are at it, also calculate the percentage of debt you have accumulated. Does it sound alarming?

That is why personal finance is important. Personal finance deals with the way we manage our assets and liabilities so…