Financial management skills are the process of monitoring, evaluating, and adjusting the use of money to ensure efficiency and meet the current and future financial needs. To improve personal financial management skills, each of us needs to have proper knowledge and understanding of financial principles and regulations. Here are 9 important skills you need to know to be able to manage your finance well.
1/ Financial planning
Financial planning is a fundamental skill of personal financial management. By defining financial goals, incomes, expenses, savings, etc., you can make a plan, adjust and optimize it over time. Thereby, you will be able to realize your financial dreams in the future soon.
2/ Budget control
Budget control is a complementary skill to help you implement your financial plan. Budget control helps you manage expenses as well as reserve funds for expected situations that may occur in life.
3/ Saving and investing
Saving and investing are essential activities for you to accumulate and increase the value of assets instead of spare money or wasting of money. By using financial tools such as online savings, savings accounts, bonds and stocks, you can maximize your profit potential.
4/ Minimize debt
Debt management is an important part of personal financial management. Therefore, you need to consider carefully before borrowing and have to plan to repay the loan on time and in full for building a good credit history for yourself, avoiding unnecessary fees and interests.
5/ Diversify income sources
Diversifying your income sources allows you to be independent of your basic salary. You will be able to balance income in the unstable economic period.
6/ Risk management
Understanding and assessing financial risks is an important part of personal financial management. By having the proper insurance plan, you can protect your assets against unfortunate situations or unexpected events.
7/ Asset management
Wealth management is an essential personal financial management skill. You need to know how to evaluate the value of assets such as houses, cars, gold, stocks, etc. to make smart financial investment decisions and protect your assets.
8/ Take advantage of the installment purchase offer
Today, you can be proactive in your spending plan, shopping for yourseld and your family through installment purchase solutions with flexible payment terms provided by reputable organizations in finance industry. Making smart use of installment loan products will help you optimize cash flow and save costs effectively. Find out Shinhan Finance's installment loan product here.
9/ Improve knowledge and apply of technology in financial management
To become a successful personal finance manager, you need to improve your financial knowledge every day. Besides, you should also learn and utilize mobile financial applications of reputable financial companies such as iShinhan - The application that reaches the Top 10 of Vietnam's Trust by Shinhan Finance. With this application, you can easily apply for loans, track payment schedules, apply for credit cards, etc., as well as update the latest incentive programs from the Company. Learn more about iShinhan here. In addition, with the rise of e-wallets and a series of attractive promotion programs, it also make payments easier and more economical.
Study and implement the above 9 skills will help you improve your personal financial management skills and get closer to worry-free in finance.