Does Experience Matter When Managing Your Own Finances?
September 15, 2008 by Miranda Marquit
Filed under Finance
There are many excuses people give for not budgeting their money, or for being poor financial managers:
- I’m no good at math. How can I possibly create a budget?
- I just don’t know how to manage money.
- I don’t have professional financial experience. How can I be expected to know what to do?
However, these excuses sound pretty lame when you think about it. The fact of the matter is that you can manage your own finances. You don’t need professional experience, and you do not have to be good at math. But you do need to be willing to learn, and willing to show some discipline.
Here are some things you can do to increase your knowledge of personal finances — and find ways to better track your income and expenses through budgeting:
- Be willing to learn. Read books, blogs and attend workshops about personal finances.
- Get personal finances software. There are a variety of programs out there that can help you track your spending and income. No math required.
- Find a budgeting program. Many personal finances software programs also include budgeting functions. These can help you visually see where you can improve, and can even help you budget better.
- See a professional. Set up a time with a fee based (not a commission based) financial planner. He or she can help you create a plan, teach you the basics, and generally get on track with your finances.
With a little effort, you can learn to manage your finances and become better at budgeting.
Bieng unwilling to do your own budgeting really has nothing to do with inability. It has everything to do with lack of self control. When it comes right down to it, someone who wants to spend their paycheck instead of paying the bills is going to do it. It just makes it sound better to themselves and to others to say “I don’t know how to budget my money.” Its an excuse (possibly subconsious) to make them feel better about bieng financially irresponsible.
Thank you for sharing your thoughts, division!
I agree that often it’s more of an excuse. It is true that budgeting and managing your finances is not terribly difficult if you take the time to learn how to do it, and take advantage of available tools.
“The fact of the matter is that you can manage your own finances. You don’t need professional experience, and you do not have to be good at math. But you do need to be willing to learn, and willing to show some discipline.”
I couldn’t agree more. I am a self-taught investor. I have no doubt in my mind that ANYONE can learn the basics and manage their own portfolio.
Thanks for sharing, Vered! You make a good point. It’s all about putting your mind to it.