Reasons to Study Personal Finance: Mistakes by People Coursework

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As a friend of Lindsey’s, I want to persuade her to choose the courses of personal finance instead of one more advanced class in sociology. Originally, there is a strong necessity to mention that personal finance will be more interesting to her due to several reasons. This sphere of finance deals with money and taking decisions concerning the financial situation in a family. The major point is that Lindsey is going to get married soon, in a year or so, and a proper awareness of how to make the financial status of her family better and stronger may be rather useful. Moreover, the knowledge on the matters of financial planning will help her in arranging her wedding.

During the classes of personal finance, students learn how to obtain, save, and develop the monetary sources of their families during a long period. Many people do not want or just do not have a chance to learn this simple but, at the same time, crucially important discipline.

Sociology course is really helpful for communication with people, still, this experience may be attained in everyday communication, while dealing with financial resources requires really strong and systematized skills and knowledge. The second reason deals with geographical location. It is Redding, California. This is one of the largest cities in Sacramento and develops day by day. This is why it is not that easy to control own budget: certain changes within the city may cause certain changes within each family. Personal finance helps her to be ready for challenges in her family, caused by the fast development of the city.

In fact, there are so many mistakes, which people make while managing their personal finance. Some of them are rather serious and may considerably influence people’s future. Sometimes, these mistakes are not that significant and may just disturb families for a while. However, it is better to be ready for difficulties and be aware of the mistakes within personal finance.

Of course, the best way to solve the problems is to discuss the financial situation of the family together, if the whole family is engaged in the problem of managing the finances. Still, the best way of managing personal finances is to plan all the expenses. Originally, it is the most serious mistake – lack or absence of planning. This generally causes uncontrolled expenses and serious gaps in the personal budget.

Another mistake, is the absence of extra money, a kind of emergency fund. Originally, it is linked with the issues of planning, as some particular sum should be saved for an unexpected occasion. When a family starts its development, it is crucially important to take each step carefully and think about the consequences and future. It is not reasonable to spend all money in one or two days in order to enjoy married life during such a short period of time. Personal finance is a good way to learn how to create properly this emergency fund and use it. If my friend is going to married soon and is eager to create her own family, personal finance is just the discipline to choose and create a more or less safe future. The examples, described above, should help her comprehend this truth.

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IvyPanda. (2022, March 7). Reasons to Study Personal Finance: Mistakes by People. https://ivypanda.com/essays/reasons-to-study-personal-finance-mistakes-by-people/

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IvyPanda. 2022. "Reasons to Study Personal Finance: Mistakes by People." March 7, 2022. https://ivypanda.com/essays/reasons-to-study-personal-finance-mistakes-by-people/.

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IvyPanda. "Reasons to Study Personal Finance: Mistakes by People." March 7, 2022. https://ivypanda.com/essays/reasons-to-study-personal-finance-mistakes-by-people/.

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