Why Finance is personally important?

Just like a company, we all need money. We need money to live (food, clothing, shelter) and we probably want money for a great number of things (concert tickets, cars, computers, etc.). Thus we need to get money. Finance helps us to have the money when we need it and even when we want it. Obviously finance is important if we run our own firm. Here we need to efficiently manage our resources and know what risks are worth taking. Further we need to know how to invest and how to raise money. Even if you never plan on owning your own business, Finance is still important to you. Finance teaches us to understand the other side of every transaction. If you understand what your employer wants, it is easier to achieve this and hence you are in a better position for raises and promotions. That said, few people will now work their entire life at the same firm. This can have dramatic financial implications. Knowing in advance your financial position and options dramatically reduces your stress in this time of change. Taxes can take 40% of what we earn. Making the right investments can cut this tax burden. This is yet another reason to study finance. Many people find themselves in financial ruin even though they may be extremely successful in their field. For example the news is constantly telling us of star athletes who have gone from making millions to flat broke. Most of these stories could have been avoided with some basic financial knowledge and financial discipline. Retirement planning is one of the most cited reasons of why finance is important. This is because it is so clear-cut. You must invest for your retirement. Knowing how can prevent needless heartache later. Ironically, Finance is important because we do not want to have to worry about money. Marriages are ruined, friendships crushed, and health destroyed over money worries. I do not want these things to happen to you. Financial knowledge can help prevent these problems.