The Importance of Financial Management Analytical Essay by vinnbean

The Importance of Financial Management
Outlines key components of personal financial management.
# 145025 | 1,272 words | 1 source | APA | 2010 | US
Published on Oct 22, 2010 in Business (Finance, Investment and Banking)


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Description:

This paper discusses the importance of personal financial management, looking at the key elements to living within one's means and setting financial goals. It also examines how to make sound financial decisions regarding household budgeting, investing and estate planning. Personal financial management is described as accumulating enough wealth to achieve one's goals and living without monetary stress. According to the paper, this financial stability is achieved through the application of sensible financial principles and responsible behavior. Each section of the paper describes and examines a specific area of personal finance. The paper concludes by mentioning the negative consequences of bad financial decisions, which can lead to a life of debt and stress.

Outline:
Budgeting
Insurance Planning
Savings
Consumer Credit & Debts
Investing
Tax Planning
Retirement Planning
Estate Planning
Net Worth

From the Paper:

"Next, necessities are factored in into the budget. Necessities are things that are needed in life. Necessities include a home, food, clothing, transportation and other necessary expenses. Still, the cost of the necessity can be controlled by proper planning. Discretionary expenses are those "elective" expenses. They are the wants. Eating out, traveling on family vacations, or trips to the salon are all example of discretionary expenses. Savings and debt should also be included in budgeting."

Sample of Sources Used:

  • Sander, Peter. (2003). The Everything Personal Finance Book. Avon, MA: F+W Publications, Inc.

Cite this Analytical Essay:

APA Format

The Importance of Financial Management (2010, October 22) Retrieved June 03, 2020, from https://www.academon.com/analytical-essay/the-importance-of-financial-management-145025/

MLA Format

"The Importance of Financial Management" 22 October 2010. Web. 03 June. 2020. <https://www.academon.com/analytical-essay/the-importance-of-financial-management-145025/>

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