Introducing Personal Finance

financial management is about taking control of your life.

Remember that a budget is a planning tool;

Financial management actually has very little to do with money – money is just a unit of measurement – financial management is about taking control of your life.

Money: Any store of resource value owed to the owner.

Transferability: A characteristic (of a credit) of being able to readily transfer or exchange ownership.

ey, then, is nothing more than a form of measurement, providing a numerical way to record the amount of value in goods or services that are owed and can be transferred freely between people, which is exactly how money gets its value.

wrong. Instead, they give you a credit which you can give to anyone else, which will still be honoured regardless of who has it. This trait is called transferability, and it’s what allows money to be given to others in exchange for their services, and after several intervals of exchange; eventually, it will likely be given back to the person who originally gave it to you, by whomever needs his services.

ost people don’t even care what the underlying nature of money is, so long as they continue to have enough of it to pay their expenses,

but the nature of money is a representation of human nature, the way we coordinate societies.

Unless you understand the nature of money and finance, you cannot possibly hope to effectively manage either.