Essay about The Importance of Personal Finance

This is a sample essay on the importance of personal finance. Students can use it as an overall guide on how to organize and structure your own essay on the same topic. If you have problems with such writing, turn to an essay writing service for help. In this case, you will get a professional to write the paper for you. This option is of much importance for those who want to see how real experts work on such pieces of writing.

It’s not an exaggeration to say that money is one of the most important aspects of living life. Many people spend the entirety of their lives needing money, training to make more money, or actually making it so they can afford all of life’s many expenses. That said, one cannot deny that the modern days numerous expenses call for personal financing and management for almost everyone, but especially students. It’s no secret that many college students struggle with their finances, and while this scenario can be somewhat attributed to the rising cost of a college education, there have also been many arguments supporting the notion that students simply do not understand the importance of managing their finances. This sample piece discusses the value of personal finance in a student’s life.

The primary reason many students suffer financially throughout their college years is that they are often impulsive, mostly due to being young and relatively inexperienced in living on their own. Most students do not fully understand the true extent of expense when living solo, often leading them to put less value on money for necessity rather than amenities. A lack of inhibition is to be expected to some extent, and there’s not much that can be done about it outside of life experience itself. Personal financing is an excellent alternative, due to its inherent nature of bringing money to the forefront of the student mind. The first step to solving any one problem, in this case, a student’s lack of awareness or experience on an issue, is to make the issue obvious so that it can be studied and accounted for. In this light, personal finance is important to students simply so that they may realize just how vital financial management is when living on your own.

Naturally, personal finance serves a very important functional purpose for students as well. Once the need for personal finance makes itself obvious, that usually equates to budgeting. Budgeting one’s finances is one of the most effective ways of countering the impulsiveness of youth, primarily by not condemning it outright. Being able to spend money on things one does not need but does enjoy shouldn’t be criticized, so long as it is done in moderation and secondary to necessities, which budgeting helps facilitate. By taking the time to partition one’s resources according to their needs, not only does a student learn the details of their living expenses, but they ensure that they can be met. Furthermore, this partitioning of money lets the student know exactly how much they have left over to satisfy their secondary wants following their primary needs. In this way, personal finance, and the budgeting it entails accounts for a student’s needs but does not punish them for also satisfying their wants, within reason. Not only does this lead to greater financial stability for them, but it helps keep them content as well.

Finally, and perhaps most importantly, personal finance helps facilitate fiscal responsibility in students that have, for the most part, been able to rely on the financial abilities of their parents throughout most of their lives. There is much to learn about the financial world, especially once you are living on your own. Many students do not know the true value of an investment, saving money on a monthly basis, or the dangers of relying on credit, despite how important it is to build that credit. To call the financial world complicated would be an understatement, which is exactly why personal finance is such a broad term; and why learning its intricacies is valuable for anyone, not just students. In truth, the value of personal finance cannot truly be ascertained since it includes such a broad spectrum of knowledge, skills, and tricks, but that value also cannot be overstated enough. It is a valuable life skill that will serve any individual for as long as they live, but students, who are usually facing the world alone for the first time, can reap more benefits from personal finance than nearly anyone else.

In short, the value of personal finance to students is potentially even more significant than it is for the average member of society. There’s no real specific reason for why other than the simple fact that knowing how to manage your finances in useful no matter who you are or what you do. All other factors notwithstanding, there’s truly no argument to be made against an individual learning as much as they can about personal finance. But for a younger person that has less life experience than others, the benefits of learning and mastering the many facets of personal finance are great. Aside from teaching them more about managing their own money in a way that still allows them to indulge to an extent, they will also learn the value of many different financial tactics and the risks of relying too much on riskier financial alternatives. Going into full detail on the values of personal finance for a student is not possible in this brief discussion, but in reality, it doesn’t need to be. That personal finance is a valuable skill to learn is obvious, regardless of what member of society is in question.

References:

  1. Basu, Sudipto. “Personal Finance for College Students.” One Cent At A Time, 30 Dec. 2017, onecentatatime.com/personal-finance-for-college-students/.
  2. Clark, Sophia. “Why Personal Finance Education Is Important.” TechBullion, 18 Feb. 2018, www.techbullion.com/why-personal-finance-education-is-important/.
  3. https://www.BlueShoreFinancial.com, BlueShore Financial: “Ten Reasons Why Financial Planning Is Important.” Ten Reasons Why Financial Planning Is Important | BlueShore Financial, 2018, www.blueshorefinancial.com/ToolsAdvice/Articles/FinancialPlanning/TenReasonsWhyFinancialPlanningIsImportant/.
  4. Joy, Devin. “Personal Finance for College Students | Lesson Plans and Workbooks.” InCharge Debt Solutions, InCharge Debt Solutions, 2018, www.incharge.org/financial-literacy/resources-for-teachers/college/.
  5. “Personal Finance Lessons: Budget Planning for College Students | SunTrust Resource Center.” SunTrust, 2018, www.suntrust.com/resource-center/personal-finances/article/personal-finance-lessons-budget-planning-for-college-students.
  6. Sherman, Brad. “The Importance of Personal Finance Knowledge.” Sherman Wealth Management | Financial Planning in MD and DC Metro, 1 Nov. 2016, www.shermanwealth.com/the-importance-of-personal-finance-knowledge/.
  7. Zucchi, CFA Kristina. “Why Financial Literacy Is so Important.” Investopedia, Investopedia, 19 Mar. 2018, www.investopedia.com/articles/investing/100615/why-financial-literacy-and-education-so-important.asp.

Beware of These College Savings Plan Pitfalls

When saving for a child’s education there are a few options available. Every family has different needs and a different situation so it is important to research what is best for you given the age of your child, your financial means and needs. A very popular option is the college savings plan which was created for the purpose of education costs savings plans. There are many benefits to this type of plan (i.e.; tax advantages, parental controls) but there are some drawbacks and pitfalls to college savings plans that aren’t always discussed. Here’s a closer look at some of these advantages and disadvantages:

Taxes

Most people are attracted to college savings plans because of their tax benefits. There are definitely tax benefits which include earnings grow on the tax-deferred basis and qualifying educational expenses are tax-free, but it is important that you are careful. If you do withdrawal earnings it is important that they are being used for qualified expenses at a qualified institution. If you don’t do this than the earnings are taxable plus a 10% penalty is applied. This can lead to some hefty bills, so it is imperative that you keep track and are following the rules on qualified expenses for your plan.

There is an application out there that can save you time, and help kickstart your college savings plan. U-Nest.com can take what used to take hours of expensive meetings with financial advisors, and involved faxing, copying, and emailing paperwork, etc – now can be done from your phone in about 5 minutes – and the process is entirely secure and paperless. Download their app to get started today!

Flexibility

College Savings Plans are not very flexible when it comes to changes in your investment. The frequency of changes to your selections are often limited. Sometimes an additional charge may be applied or you may be forced to change plans.

Complexity

Since college savings plans are very beneficial for saving for college, there are many particulars when it comes to certain aspects of the plans that can lead to mistakes. There are often rules about what are eligible expense, rules regarding gifting, rollovers to family, financial aid and tax quirks that are unique to these type of plans. As with the tax benefits, it is important to stay on top of these particulars.

Diversify

You may find that diversifying your educational savings is the way to go. Use the 529 for their benefits, but also use the other instruments to save as well. By spreading your savings around, you’ll give yourself the most financial flexibility for that day when your kid becomes a university freshman.

Consider the items mentioned above to make sure you are making the best decisions about your college and educational savings.

Distinguishing Wants from Needs

One of the most difficult aspects of living in a market-driven, consumption-oriented society is knowing when what you already have is good enough. After all, you’re bombarded with messages everyday telling you the thing with which you thought you were satisfied has been replaced by something ending with the suffix “-er”.

Whether bigger, better, faster, prettier or even smaller, we’re continually being told what we have isn’t good enough. This can make distinguishing wants from needs tough to do.

Needs and Wants Defined

On the face of it, the difference between needs and wants is pretty simple.

A need is something you must have to survive, while a want only makes your existence more pleasant. For example, you might well need a car to get back and forth to work to earn an income to help you survive. But you want that car to be a Porsche or a Cadillac—even though a Volkswagen or a Chevrolet will do.

When it comes right down to it, all you need to survive is nutritious food and water, competent health care, clothes, shelter, and an income to help you acquire those things. Desiring anything beyond the basic version of those things transforms the need into a want.

Mind the Questions You Ask

Marketers routinely plant thoughts in our heads to elevate wants into needs.

“Why throw good money after bad? Rather than fixing that toaster, just get a new one with more modern features.” (Because it will cost more.)

“Why settle for a HDTV, when Ultra HDTV is coming soon and will make HDTV obsolete?” (It doesn’t.)

“I’m already spending $20,000 to get the car, why not spend another thousand to get it in silver?” (Even though white is included in the base price.)

Succumbing to these rationalizations inevitably cause us to spend more money than we really should, just to satisfy an artificial “need”.

Stop and Take a Good Look

Getting caught up in delusional “needs” is very easy to do. In order to break the cycle, we have to step back, take a look at what we have and realize it’s so much better than good enough. When our brains convince us, we need something outside of our price range, we tend to focus on that thing to the detriment of the similar item we already have.

If we aren’t careful, this desire can become an obsession, rendering us incapable of appreciating the things we already own. This can push us to a relentless pursuit of “new and better.” In a society like ours, it’s all too easy to convince ourselves we’re being deprived, when the fact of the matter is we’re light-years away from deprivation.

Breaking the Cycle

With all of that said though, how much fun would life be if we just fulfilled our needs and never indulged our wants?

Pretty dull—right?

Maybe, but we must also be careful to avoid overindulging.

This is one of the reasons most Americans are in debt. To break the cycle, stop living from paycheck to paycheck and get out of debt, taking note of these impulses is a good first step.

Meanwhile, if the situation has progressed past your ability to make ends meet, it might be useful to contract the services of a company like Freedom Debt Relief. Firms like this can help you reduce your debts to a more manageable level, so you can pay them off and get back on solid financial footing.

Keep in mind; nobody’s saying you shouldn’t have nice things. We’re put on this earth to thrive, not merely to survive. However, learning to distinguish your wants from your needs will make it easier to enjoy those wants when you get them. Otherwise, you’ll always be seeking the next new thing, when the reality is what you already have is good enough.

The Importance of a Vision and Strategy to Reach Your Goals

One of the most satisfying moments as a human being is when you have a clear vision and a goal, and you then achieve it. It is a wholesome, addictive experience, but remarkably few people actually complete what they want to achieve.

There can be a million excuses as to why people don’t reach their goals, but, essentially, there are three reasons why people miss out. The first is that the vision is not clear enough, which is a massive problem as it’s almost impossible to find your way somewhere if you don’t know where it is in the first place. The second problem is that they don’t have a clear strategy, they might know where the place is, but they don’t route there. And the third issue – and most common – is that they may be on there way, but they don’t have any definable targets to ensure that they keep up the pace and get to where they want before it’s too late.

Your Vision

Everybody has visions. It could be scoring the winning goal in the World Cup, wooing the person of your dreams, becoming a rockstar, getting fit, or creating your own business.

The trouble is, visions are often vague and, if no action is taken, they’re nothing more than a pipedream. But that’s not to say visions are bad. On the contrary, they’re invaluable. But the important thing isn’t to merely have a vision, it is to have clear vision. The clearer the vision, the more likely you are to make it a reality.

If you’re serious about your vision, you need to think about it in such detail that it is effectively reality. Nothing should be inexplicable in your vision. How did you reach your vision? What steps did you take get there?

Detail is key, and the best way to create detail is with numbers. How much, how many, when.

Your Strategy

If you have a clear, definable vision in place, you next need a strategy. How do you make your vision a reality?

 

Again, just as was the case with your vision, your strategy needs to have as much detail as possible. A strategy without detail just won’t succeed.
Say, for example, you want to buy your first house. Merely imagining the house won’t land you the house. But it’s a start, as you can picture what type of house you want. So, with this image in mind, you need to calculate how much this house will cost. Let’s say it costs 500,000. Now you know the cost, you need to figure out how to get the money. Let’s say you earn 50,000 per year and can save 10,000. That means it will take you 50 long years to pay off the house, forgetting the interest. So how can you gather the money you need? Maybe you get a second job, maybe you start a business on the side. But what is important is that you start thinking about the how – and exactly how – your strategy can make your vision a reality.

A vision, goal and a strategy is the key basis for achievement, but in order to make them a reality, you need clearly defined targets.

Your Targets

Once you have a vision, and strategy to achieve it, you need to set some targets in order to keep you on track.

One major mistake that people make when they set targets is that they are too big, too vague and too distant. Ideally, your targets should impact your daily life. You should wake up with them in your mind, ready to make happen, and go to bed thinking about how the next day can go another step to achieving your overall vision.

You should see your targets as a ladder, and the only way to reach your overall goal is to go up your ladder step-by-step. Make the steps to far apart or too high and you won’t reach them, so make sure you’re comfortable with every target you set and that you fully understand how you will reach that goal. Don’t overwhelm yourself.

Your targets are key to implementing your strategy, which, itself, is key to realising your goals.

The Beginner’s Way into Forex Trading

If you are new to the online forex trading world, you might be feeling overwhelmed, confused and lost. A simple search online on how to trade forex will bombard you with loads of information and tips. If you want to trade forex successfully, the first step is to take it slow; take the time to learn about the forex market and how to trade, and then step into the trading arena with confidence and the right tools to succeed.

  1. Education is Key

Many new traders simply jump right in, and within a very short space of time, they have lost their trading capital and they then walk away feeling disappointed and disillusioned. As with anything in life, if you want to succeed, you need to educate yourself and understand how the forex market works and what factors impact price movements. To build a solid trading foundation, make time to follow the financial news and get a solid understanding of the trading terms as well as the tools that you have available to trade with.

  1. Choose a Reliable Broker

In order to trade online, you need to be able to access a trading platform. To find the best forex brokers in the industry, only look at regulated brokers. In this way, you can have peace of mind that they are operating within a regulated framework monitored by the necessary authorities. Ensure that the broker offers a platform that is easy to use and take the time to check their educational resources. The more knowledge and skills you have before you start trading, the more successful you are likely to be. Check the broker’s terms and conditions and test their customer support. Remember that a forex broker is your trading partner and it is important that they offer an all-inclusive trading platform that meets your trading needs and style.

  1. Demo Trading Account

As part of educating yourself and familiarizing yourself with the forex world, start your trading activities on a demo account. Not all brokers offer this service, so selecting one that does, is highly recommended. A demo account allows you to test the trading platform and its features as well as experience trading in a live setting without the risk of losing any money. Once you feel more comfortable with the trading process and the trading tools that can finetune your analysis, you can then move to a real trading account.

  1. Automate Your Trading

Some of the best forex brokers offer automated trading. This means that you can simply copy the trades of top traders on their platform. This is an excellent way to learn trading skills and strategies and to eliminate emotional trading. Auto trading may also involve setting specific parameters before a trade will be executed. You can use auto trading as you learn the ropes of forex trading.

The first step in forex trading is education. Once you understand the market you are trading and the price movements that always occur, you will be better positioned to make the right trading decisions. Keep records of your trades and make sure to record both your successes and your failures.

The Shocking Truth About Gift Cards

Everyone loves gift cards. They’ve rapidly become a favorite way to give presents; they’re classier than cash but offer the flexibility of letting recipients pick out their own gift. Sales via gift cards surge incredible around major holidays. Here are some gift card facts that may surprise you.

Gift Cards Aren’t Just for Enormous Chains

If you thought only international corporations had the ability to create their own gift cards, think again. With many cutting-edge payment systems – the Clover POS system for example – you can brand your own gift cards and even add funds to them with the touch of a button.

Gift Cards Are Inexpensive

If you’re already partnered with a merchant payments provider, there’s a good chance incorporating the equipment needed to offer gift cards either won’t cost you a dime or will be very price-friendly – expect around $1.00-$1.50 max per card.

Gift Cards Boost Your Brand Loyalty Significantly

Many POS providers, such as Revel Systems, allow you to create custom gift card designs that show off your brand name prominently. They also help you create everything from periodic sales to special promotions, point rewards and other exciting deals customers love.

Clients Spend More When Paying With Gift Cards

Gifts stimulate people psychologically to want to spend. They willingly reach towards big ticket items. It’s rare that customers will find an item matching their card’s value perfectly, so most overspend. They don’t feel guilty about going $15-$20 or more over the limit because they view it as free money.

You Can Accept Gift Card Payments Online

Some POS systems come integrated with mobile payment options that allow you to handle all types of e-commerce and even set up your own website. When customers can shop your store without leaving the house, and pay with a gift card, it’s win-win for them and you.

Take the plunge into setting up your own gift card rewards system. Gift cards make customers happy and deliver free advertising – not to mention word-of-mouth promotion from those happy customers. The best part is that there’s only one place they can spend it: that’s right, your store.

Summer Day Trips

When summer rolls around, everyone has the same thought. What can we do? Summer is the time to enjoy time off, enjoy the weather, and enjoy going places. When you are trying to find places to go it can either be visiting family/friends, going on vacation or even just day trips for new experiences. When kids are involved you especially want to do what you can to make their summers memorable. Day trips can be perfect for this because they allow you tackle multiple locations in a short period of time making summer time buckets of fun. Below are some options of day trips that you can do with your family.

Beaches

One option for a day trip are beaches. The beach (if you are fortunate to be within driving distance to one) is always a good time and can be done in a day if planned properly. It can be a day of relaxing if you don’t have kids or a day of fun if kids are involved. Be sure to explore where you can have a homebase like a bathroom or such for you to change and rinse off before heading home. Some beaches offer chair and umbrella rentals to make the day trip planning even more easy. It will allow you to relax and enjoy reading a book, play a game on your phone like Promo code from Tropicana casino, or read a magazine. You can also visit restaurants for breakfast, lunch and dinner before heading home.

Parks

Parks are another option for day trips. Not only are there national or state parks that can offer you a good time but you can also simply look up well known playgrounds in the driving area that are worth the trip. State parks are often a good option if you would like to hike or take in the beauty of waterfalls or landmarks. Kids often like to try out new turf and take in new playgrounds as well.

Amusement Parks

Amusements parks are also a fun option. All throughout the country you can find various forms of amusement parks, water parks, zoos, aquariums, etc. that can be fun to drive to and visit. All are different in their own way. They often offer discounts as well in the summer. Some local libraries offer discount tickets or even free tickets for you to reserve.

Shopping

There are often good shopping venues  to explore. There are a lot of outlets that are outside so you can walk around and enjoy the weather as well. There are also malls that may be worth the drive to explore on a rain day.

Take these tips to start planning your summer bucket list and have the best summer of your life!