Personal financial management, often referred to as “how to manage personal money,” encompasses the processes and strategies individuals use to budget, save, and invest their money. It involves managing cash flow, setting financial goals, and making informed decisions about spending and saving.
Effective personal financial management is crucial for financial stability and long-term financial well-being. It can help individuals achieve their financial goals, such as buying a home, retiring comfortably, or funding their children’s education. It can also provide peace of mind and reduce financial stress.