Personal Finance is Personal

16 Oct 2023

When talking about Personal Finance, the devil is in the details !

Personal finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.

• Source / Credits : Investopedia

However for each individual, the need, process, goal and the reason for doing money management (as in personal finance) is different.

A lot of times as one grows in their quest of earning money, one often feels the pressure about a particular form of investment, type of budgeting method or way of spending money, etc.

However without understanding one’s true need and goal, it is not good to treat “finance” as something “generic”. It is not “generic”, in fact it is indeed “personal”.

• There are a varied number of reasons for which one may have management of his personal finances like :
  • Opportunity cost
  • Stability
  • Volatility
  • Total cost of ownership
  • Cashflow
  • Capital gains
  • Buying time
  • Buying efforts
  • Long term / short term
  • Etc.

The list may be short / long / endless with respect to the above one, but the main idea here is, it is case by case basis depending on the individual in question.

That is why I feel, if possible one must definitely understand in general about the holistic picture but when it comes to one’s own “personal finance”, it is “personal”.