Personal Finance Is More Important Than Earning Money

Every Business, StartUps, banks, hospitals, Real Estate, Government, Mutual Funds, etc deal with money.

We all have a rule — go for education, spend our precious years into it, work for a company, save, save, save, retire, and then God will call us.

That is most of our routine.

Think for some seconds. Is it what we want to do in our life? Isn’t it boring?

Keep the above thoughts in your mind.

Now let us talk about which we all deal with, but don’t have enough knowledge about it.

Yes, I am talking about Personal Finance.

We start our journey from schooling, more clearly for education.

Right.

But why? To gain enough knowledge about a field.

Really? No, we want to build wealth, want financial freedom, want to live a decent life, and all that luxuriate stuff.

From where it comes?

All it comes from earning money or generating money.

But do we really learn how to earn money? how to build wealth? No. We are learning everything rather than all of this.

Personal finance can change our lives if we learn it.

Want real examples? Here it is.

Personal Finance is Crucial

Peoples are earning money by providing financial advice.

For example,

Books like Rich Dad Poor Dad, Secrets of the Millionaire Mind are one of the best books of all time. These are the best-selling books for New York Times, Wall Street Journal, and USA Today BestSeller.

Even Robert Kiyosaki (author of Rich Dad Poor Dad) started a company with the name Rich Dad.

Want something more?

According to Wikipedia, Kiyosaki’s main earnings come through franchisees of the Rich Dad seminars.

Personal Finance is helping Business to Succeed

Yes, it is true.

Let me explain it with an example.

Bitcoin introduced Blockchain, a new concept to the entire world. And after that everything changed.

According to coindesk, A bitcoin price was $123.03 on October 8, 2013. And now it is $58734.48 on March 31, 2021.

Much more than we expected.

Why is it so much valued? People trusted Bitcoin and invested their savings into it.

After that, several cryptocurrencies were introduced as Ethereum, Litecoin, and several more.

Without Personal Finance you can be Bankrupt

According to the National Endowment for Financial Education, Statistics show 70% of lottery winners end up broke and declare bankruptcy.

It is because they lack personal finance advice or concepts. They don’t know that money creates money.

The prime reason for bankruptcy is that they haven’t learned about finance.

You can earn money but can’t hold it without personal finance.

So from the above examples, we can conclude that Personal Finance is more important than earning money.

Personal Finance can also make you rich

Do you know what Warren Buffet is doing? He is using his brain to make money using Money.

How to start Personal Finance in your life

It is more simple than you think. You have to start to earn more. It is only because if you earn more you can save more.

So you have to start your Personal Finance by saving at least 40% of your monthly income.

It is not that much hard.

When you got your paycheck, try to remove 40% for your saving at first. Now you have to enjoy within 60% of your earnings.

Try to create wealth from the money.

Spend your savings on Real Estate, Mutual Funds, Bonds, Your Businesses, etc.

What if you can't rely on 60% of your earnings? Simply try to earn more.

Enable Money to work for you

Now you have saved 40% of your earnings. Can you allow your money to earn more money?

Yes, it is possible.

For example, you have money to buy a new house. Buy it and then rent it.

It will allow you to earn money from money.

The second example is Compound interest. When you save your money Mutual Funds, etc. It provides you compound interest.

Let’s Wrap Up

I hope that all of you find it interesting. Don’t hesitate to leave feedback or doubts.

You can also send me a tip that helps me to grow and provides me motivation to write every day.

That’s all for now — Thanks.

This story is originally published at Medium.