What Is Personal Finance?

Personal finance is a term that covers managing your money as well as

saving and investing. It encompasses budgeting, banking, insurance,
mortgages, investments, and retirement, tax, and estate planning. The
term often refers to the entire industry that provides financial services to
individuals and households and advises them about financial and
investment opportunities.

Individual goals and desires—and a plan to fulfill those needs within your
financial constraints—also impact how you approach the above items. To
make the most of your income and savings, it’s essential to become
financially savvy—it will help you distinguish between good and bad advice
and make intelligent financial decisions.

KEY TAKEAWAYS

 Few schools have courses on managing your money, so it is

important to learn how through free online articles, courses, blogs,
podcasts, or books.
 The core areas of managing personal finance include income,
spending, savings, investments, and protection.
 Smart personal finance involves developing strategies that include
budgeting, creating an emergency fund, paying off debt, using credit
cards wisely, saving for retirement, and much more.
 Being disciplined is important, but it’s also good to know when you
shouldn't adhere to the guidelines.

The Importance of Personal Finance

Personal finance is about meeting your personal financial goals. These
goals could be anything—having enough for short-term financial needs,
planning for retirement, or saving for your child’s college education. It
depends on your income, spending, saving, investing, and personal
protection (insurance and estate planning).

Not understanding how to manage finances or be financially disciplined

has led Americans to accumulate enormous debt. In August 2022,
household debt had increased by $2 trillion since December 2019. In
addition, the following balances increased from the first quarter of 2022 to
the second:1

 Credit card balances: Up by $46 billion

 Auto loans: Up by $33 billion
 Consumer loans and store cards: Up by $25 billion
  Total non-housing: Up by $103 billion
 Mortgages: Up by $207 billion

Student loans remained unchanged, at about $1.59 trillion.

Americans are taking on an ever-increasing amount of debt to finance

purchases, making managing personal finances more critical than ever,
especially when inflation is eating away at purchasing power and prices
are rising.

Areas of Personal Finance

The five areas of personal finance are income, saving, spending, investing,
and protection.

Income

Income is the starting point of personal finance. It is the entire amount of

cash inflow that you receive and can allocate to expenses, savings,
investments, and protection. Income is all the money you bring in. This
includes salaries, wages, dividends, and other sources of cash inflow.

Spending

Spending is an outflow of cash and typically where the bulk of income

goes. Spending is whatever an individual uses their income to buy. This
includes rent, mortgage, groceries, hobbies, eating out, home furnishings,
home repairs, travel, and entertainment.

Being able to manage spending is a critical aspect of personal finance.

Individuals must ensure their spending is less than their income;
otherwise, they won't have enough money to cover their expenses or will
fall into debt. Debt can be devastating financially, particularly with the high-
interest rates credit cards charge.

Saving

Savings is the income left over after spending. Everyone should aim to
have savings to cover large expenses or emergencies. However, this
means not using all your income, which can be difficult. Regardless of the
difficulty, everyone should strive to have at least a portion of savings to
meet any fluctuations in income and spending—somewhere between three
and 12 months of expenses.
Beyond that, cash idling in a savings account becomes wasteful because it
loses purchasing power to inflation over time. Instead, cash not tied up in
an emergency or spending account should be placed in something that will
help it maintain its value or grow, such as investments.

Investing

Investing involves purchasing assets, usually stocks and bonds, to earn a

return on the money invested. Investing aims to increase an individual's
wealth beyond the amount they invested. Investing does come with risks,
as not all assets appreciate and can incur a loss.

Investing can be difficult for those unfamiliar with it—it helps to dedicate
some time to gain an understanding through readings and studying. If you
don't have time, you might benefit from hiring a professional to help you
invest your money.

Protection

Protection refers to the methods people take to protect themselves from

unexpected events, such as illnesses or accidents, and as a means to
preserve wealth. Protection includes life and health insurance and estate
and retirement planning.

Personal Finance Services

Several financial planning services fall under one or more of the five areas.
You're likely to find many businesses that provide these services to clients
to help them plan and manage their finances. Some of these services are:

 Wealth Management
 Loans and Debt
 Budgeting
 Retirement
 Taxes
 Risk Management
 Estate Planning
 Investments
 Insurance
 Credit Cards
 Home and Mortgage

Personal Finance Strategies

The sooner you start financial planning, the better, but it’s never too late to
create financial goals to give yourself and your family financial security and
freedom. Here are the best practices and tips for personal finance.

The 2022 Investopedia Financial Literacy Survey surveyed 4,000 adults

and found that most Americans are concerned about personal finance
basics, retirement funding, and investing in crypto.

1. Know Your income

It's all for nothing if you don't know how much you bring home after taxes
and withholding. So before deciding anything, ensure you know exactly
how much take-home pay you receive.

2. Devise a Budget

A budget is essential to living within your means and saving enough to

meet your long-term goals. The 50/30/20 budgeting method offers a great
framework. It breaks down like this:

 Fifty percent of your take-home pay or net income (after taxes) goes
toward living essentials, such as rent, utilities, groceries, and
transport.
 Thirty percent is allocated to discretionary expenses, such as dining
out and shopping for clothes. Giving to charity can go here as well.
 Twenty percent goes toward the future—paying down debt and
saving for retirement and emergencies.

It’s never been easier to manage money, thanks to a growing number of

smartphone personal budgeting apps that put day-to-day finances in the
palm of your hand. Here are just two examples:

 YNAB (an acronym for You Need a Budget) helps you track and
adjust your spending to control every dollar you spend.2
 Mint streamlines cash flow, budgets, credit cards, bills, and
investment tracking from one place. It automatically updates and
categorizes your financial data as information comes in, so you
always know where you stand financially. The app will even dish out
custom tips and advice.3

3. Pay Yourself First

It’s important to “pay yourself first” to ensure money is set aside for
unexpected expenses, such as medical bills, a significant car repair, day-
to-day expenses if you get laid off, and more. The ideal safety net is three
to 12 months of living expenses.

Financial experts generally recommend putting away 20% of each

paycheck every month. Once you’ve filled up your emergency fund , don’t
stop. Continue funneling the monthly 20% toward other financial goals,
such as a retirement fund or a down payment on a home.

4. Limit and Reduce Debt

It sounds simple enough: Don't spend more than you earn to keep debt
from getting out of hand. But, of course, most people have to borrow from
time to time, and sometimes going into debt can be advantageous—for
example, if it leads to acquiring an asset. Taking out a mortgage to buy a
house might be one such case. Still, leasing sometimes can be more
economical than buying outright, whether renting a property, leasing a car,
or even getting a subscription to computer software.

On the other hand, minimizing repayments (to interest only, for instance)
can free up income to invest elsewhere or put into retirement savings while
you’re young when your nest egg gets the maximum benefit
from compounding interest. Some private and federal loans are even
eligible for a rate reduction if the borrower enrolls in auto pay.45

Student loans account for $1.59 trillion of consumer debt—if you have an
outstanding student loan, you should prioritize it. There are myriad loan
repayment plans and payment reduction strategies available. If you’re
stuck with a high interest rate, paying off the principal faster can make
sense.

Flexible federal repayment programs worth checking out include:

 Graduated repayment—progressively increases the monthly

payment over 10 years
 Extended repayment—stretches out the loan over a period that can
be as long as 25 years
 Income-driven repayment—limits payments to 10% to 15% of your
income (based on your income and family size)

5. Only Borrow What You Can Repay

Credit cards can be major debt traps, but it’s unrealistic not to own any in
the contemporary world. Furthermore, they have applications beyond
buying things. They are crucial to establishing your credit rating and a
great way to track spending, which can be a considerable budgeting aid.
Credit needs to be managed correctly, meaning you should pay off your
entire balance every month or keep your credit utilization ratio at a
minimum (that is, keep your account balances below 30% of your total
available credit).

Given the extraordinary reward and incentives offered these days (such as
cashback), it makes sense to charge as many purchases as possible—if
you can pay your bills in full.

Avoid maxing out credit cards at all costs, and always pay bills on time.
One of the fastest ways to ruin your credit score is to constantly pay bills
late—or even worse, miss payments.

Using a debit card, which takes money directly from your bank account, is
another way to ensure that you will not be paying for accumulated small
purchases over an extended period with interest.

6. Monitor Your Credit Score

Credit cards are the primary vehicle through which your credit score is built
and maintained, so watching credit spending goes hand in hand with
monitoring your credit score. If you ever want to obtain a lease, mortgage,
or any other type of financing, then you’ll need a solid credit report. There
are a variety of credit scores available, but the most popular one is
the FICO score.6

Factors that determine your FICO score include:7

 Payment history (35%)

 Amounts owed (30%)
 Length of credit history (15%)
 Credit mix (10%)
 New credit (10%)

FICO scores are calculated from 300 to 850. Here’s how your credit is
rated:7

 Exceptional: 800 to 850

 Very good: 740 to 799
 Good: 670 to 739
 Fair: 580 to 669
 Very poor: 300 to 579
To pay bills, set up direct debiting where possible (so you never miss a
payment) and subscribe to reporting agencies that provide regular credit
score updates. In addition, you can detect and address mistakes or
fraudulent activity by monitoring your credit report. Federal law allows you
to obtain free credit reports once a year from the “Big Three” major credit
bureaus: Equifax, Experian, and TransUnion.8

Reports can be obtained directly from each agency, or you can sign up at
AnnualCreditReport.com, a federally authorized site sponsored by the Big
Three.

Some credit card providers, such as Capital One, will provide customers
with complimentary, regular credit score updates, but it may not be your
FICO score. All of the above offer your VantageScore.9

Due to the COVID-19 pandemic, the three major credit bureaus are
providing free credit reports weekly through at least December 2022.10

7. Plan For Your Future

To protect the assets in your estate and ensure that your wishes are
followed when you die, be sure you make a will and—depending on your
needs—possibly set up one or more trusts. You also should look into
insurance and find ways to reduce your premiums, if
possible: auto, home, life, disability, and long-term care (LTC). Periodically
review your policy to ensure it meets your family’s needs through life’s
major milestones.

Other critical documents include a living will and a healthcare power of

attorney. While not all of these documents directly affect you, all of them
can save your next of kin considerable time and expense when you fall ill
or become otherwise incapacitated.

Retirement may seem like a lifetime away, but it arrives much sooner than
expected. Experts suggest that most people will need about 80% of their
current salary in retirement. The younger you start, the more you benefit
from what advisors call the magic of compounding interest—how small
amounts grow over time.11

Setting aside money now for your retirement not only allows it to grow over
the long term but also can reduce your current income taxes if funds are
placed in a tax-advantaged plan, such as an individual retirement
account (IRA), a 401(k), or a 403(b).
While your children are young, take the time to teach them about the value
of money and how to save, invest, and spend wisely.

If your employer offers a 401(k) or 403(b) plan , start paying into it

immediately, especially if your employer matches your contribution. By not
doing so, you’re giving up free money. Take time to learn the difference
between a Roth 401(k) and a traditional 401(k) if your company offers
both.

Investing is only one part of planning for retirement. Other strategies

include waiting as long as possible before opting to receive Social Security
benefits (which is smart for most people) and converting a term life
insurance policy to permanent life.

8. Buy Insurance

As you age, it's natural for you to accumulate many of the same things
your parents did—a family, home or apartment, belongings, and health
issues. Insurance can be expensive if you wait too long to get it. Health
care, long-term care insurance, life insurance—it all increases in cost the
older you get. Additionally, you never know what life will send your way. If
you're the sole breadwinner for the family, or you and your partner both
work to make ends meet, a lot depends on your ability to work.

Insurance can cover most of the hospital bills as you age, leaving your
hard-earned savings in your family's hands—medical expenses are one of
the leading reasons for debt.12 If something happens to you, life
insurance can give those you leave behind a buffer zone to deal with the
loss and get back on their feet financially.

9. Maximize Tax Breaks

Due to an overly complex tax code, many people leave hundreds or even
thousands of dollars sitting on the table every year. By maximizing your tax
savings, you’ll free up money that can be invested in your reduction of past
debts, enjoyment of the present, and plans for the future.

You should start saving receipts and tracking expenditures for all
possible tax deductions and tax credits. Many office supply stores sell
helpful “tax organizers” that have the main categories already labeled.

After you’re organized, you’ll want to focus on taking advantage of every

tax deduction and credit available, as well as deciding between the two
when necessary. In short, a tax deduction reduces the amount of income
on which you are taxed, whereas a tax credit reduces the amount of tax
that you owe. This means that a $1,000 tax credit will save you much more
than a $1,000 deduction.

10. Give Yourself a Break

Budgeting and planning can seem full of deprivations. Make sure you
reward yourself now and then. Whether it’s a vacation, a purchase, or an
occasional night on the town, you need to enjoy the fruits of your labor.
Doing so gives you a taste of the financial independence you’re working so
hard for.

Last but not least, don’t forget to delegate when needed. Even though you
might be competent enough to do your own taxes or manage a portfolio of
individual stocks, it doesn’t mean you should. Setting up an account at a
brokerage and spending a few hundred dollars on a certified public
accountant (CPA) or a financial planner—at least once—might be a good
way to jump-start your planning.

Personal Finance Skills

The key to getting your finances on the right track is using skills you likely
already have. It’s also about understanding that the principles that
contribute to success in business and your career work just as well in
personal money management. Three key skills are finance prioritization,
assessing the costs and benefits, and restraining your spending.

 Finance Prioritization: This means that you can look at your

finances, discern what keeps the money flowing in, and make sure
that you stay focused on those efforts.
 Assessing the Costs and Benefits: This key skill keeps
professionals from spreading themselves too thin. Ambitious
individuals always have a list of ideas about other ways that they can
hit it big, whether it is a side business or an investment idea. While
there is a place and time for taking a flier, running your finances like
a business means stepping back and honestly assessing the
potential costs and benefits of any new venture.
 Restraining Your Spending: This is the final big-picture skill of
successful business management that must be applied to personal
finances. Time and again, financial planners sit down with successful
people who still manage to spend more than they make. Earning
$250,000 a year won’t do you much good if you spend $275,000
annually. Learning to restrain spending on non-wealth-building
assets until after you’ve met your monthly savings or debt reduction
goals is crucial in building net worth.
Personal Finance Education
Personal money management isn't one of the most popular topics in
educational systems. Many college degrees require some financial
education, but it isn't geared toward individuals— which means that most
of us will need to get our personal finance education from our parents (if
we’re lucky) or learn it ourselves.

Fortunately, you don’t have to spend much money to find out how to
manage it better. You can learn everything you need to know for free
online and in library books. Almost all media publications regularly dole out
personal finance advice, too.

Online Blogs

Reading personal finance blogs is a great way to start learning about

personal finance. Instead of the general advice you’ll get in personal
finance articles, you’ll learn exactly which challenges real people face and
how they address them.

Mr. Money Mustache has hundreds of posts full of insights on escaping the
rat race and retiring early by making unconventional lifestyle
choices.13 CentSai helps you navigate myriad financial decisions via first-
person accounts.14 Million Mile Secrets and The Points Guy each teach
you how to travel for a fraction of the retail price using credit card rewards.
These sites often link to other blogs, so you’ll discover more sites as you
read.1516

Of course, we can’t help tooting our own horn in this category.

Investopedia offers a wealth of free personal finance education. You might
start with our special sections on budgeting, buying a home, and planning
for retirement—or the thousands of other articles in our personal
finance section. And don’t forget to listen to “The Investopedia Express
with Caleb Silver,” our weekly podcast, and sign up for Investopedia
newsletters.

At the Library

You may need to visit your library in person to get a library card if you don’t
already have one, but after that, you can check out personal finance
audiobooks and e-books online without leaving home. Some of the
following best sellers may be available from your local library: I Will Teach
You to Be Rich, The Millionaire Next Door, Your Money or Your Life,
and Rich Dad Poor Dad. Personal finance classics such as Personal
Finance for Dummies, The Total Money Makeover, The Little Book of
Common Sense Investing, and Think and Grow Rich are also available as
audiobooks.

Free Online Classes

If you enjoy the structure of lessons and quizzes, try one of these free
digital personal finance courses:

 Morningstar Investing Classroom offers a place for beginning and

experienced investors alike to learn about stocks, funds, bonds, and
portfolios. Some of the courses you’ll find include “Stocks Versus
Other Investments,” “Methods for Investing in Mutual Funds,”
“Determining Your Asset Mix,” and “Introduction to Government
Bonds.” Each course takes about 10 minutes and is followed by a
quiz to help you make sure that you understood the lesson.17
 EdX is an online learning platform created by Harvard University and
the Massachusetts Institute of Technology. It offers at least three
courses that cover personal finance: “How to Save Money: Making
Smart Financial Decisions” from the University of California at
Berkeley, “Personal Finance” from Purdue University, and “Finance
for Everyone: Smart Tools for Decision-Making” from the University
of Michigan. These courses will teach you how credit works, which
types of insurance you might want to carry, how to maximize your
retirement savings, how to read your credit report, and what the time
value of money is.18
 “Planning for a Secure Retirement” is an online course from
Purdue University. It’s broken up into 10 main modules, and each
has four to six sub-modules on topics such as Social Security,
401(k) and 403(b) plans, and IRAs. You’ll learn about your risk
tolerance, think about what kind of retirement lifestyle you want, and
estimate your retirement expenses.19
 “Personal Finance” is a free online video course from Missouri
State University through iTunes. This basic course is good for
beginners who want to learn about personal financial statements and
budgets, how to use consumer credit wisely, and how to make
decisions about cars and housing.20

Podcasts

Personal finance podcasts are a great way to learn how to manage your
money if you’re short on free time. While you’re getting ready in the
morning, exercising, driving to work, running errands, or preparing for bed,
you can listen to expert advice on becoming more financially secure. In
addition to “The Investopedia Express with Caleb Silver,” you may find
these valuable:
  The Dave Ramsey Show is a call-in program that you can listen to
any time through your favorite podcast app. You’ll learn about the
financial problems that real people are facing and how a
multimillionaire who was once broke himself recommends solving
them.21
 Freakonomics Radio and NPR’s Planet Money both make
economics enjoyable by using it to explain real-world phenomena
such as “how we got from mealy, nasty apples to apples that actually
taste delicious,” the Wells Fargo fake-accounts scandal, and whether
we should still be using cash.2223
 American Public Media’s Marketplace helps make sense of what’s
happening in the business world and the economy.24
 So Money with Farnoosh Torabi combines interviews with
successful business people, expert advice, and listeners’ personal
finance questions.25

The most important thing is to find resources that work for your learning
style and that you find interesting and engaging. If one blog, book, course,
or podcast is dull or difficult to understand, keep trying until you find
something that clicks.

Education shouldn’t stop once you learn the basics. The economy
changes, and new financial tools like the budgeting apps mentioned earlier
are always being developed. Find resources you enjoy and trust, and keep
refining your money skills through retirement and beyond.

What Personal Finance Classes Can’t Teach You

Personal finance education is a great idea for consumers, especially
people starting out who want to learn investing basics or about credit
management; however, understanding the basic concepts is not a
guaranteed path to financial sense. Human nature can often derail the best
intentions to achieve a perfect credit score or build a substantial retirement
nest egg. These three key character traits can help you stay on track:

Discipline

One of the most important tenets of personal finance is systematic saving.

For example, say your net earnings are $60,000 per year, and your
monthly living expenses—housing, food, transportation, and the like—
amount to $3,200 per month.

There are choices to make surrounding your remaining $1,800 in monthly

salary. Ideally, the first step is to establish an emergency fund or perhaps
a tax-advantaged health savings account (HSA).
To be eligible for a health savings account, your health insurance must be
a high-deductible health plan (HDHP).

Establishing an emergency fund takes financial discipline—without it,

giving in to the temptation to spend rather than save can have dire
consequences. In the event of an emergency, you may not have the
money to pay the expenses—leading you to finance them through debt.

Once you have your emergency stash, you'll need to develop investing
discipline—it’s not just for institutional money managers who make their
living buying and selling stocks. Average retail investors tend to do better
by setting an investment target and abiding by it rather than buying and
selling stocks trying to time the market.

A Sense of Timing

Timing can be crucial. For instance, imagine you're three years out of
college, have established your emergency fund, and want to reward
yourself. A Jet Ski costs $3,000, but you want to start investing also.
"Investing in growth stocks can wait another year," you say. "I have plenty
of time to launch an investment portfolio."

However, putting off investing for one year can have significant
consequences. The opportunity cost of buying a personal watercraft can
be illustrated through the time value of money.

The $3,000 used to buy the Jet Ski would have amounted to nearly
$49,000 in 40 years at 7% interest, a reasonable average annual return for
a growth mutual fund over the long haul. Thus, delaying the decision to
invest wisely may likewise delay the ability to reach your goal of retiring at
age 65.

Doing tomorrow what you could do today also extends to debt payment. If
you were to put the Jet Ski on your credit card, the $3,000 credit card
balance would take 222 months (18.5 years) to pay off if you only made
minimum payments of $75 each month. And don’t forget the interest you’re
paying: at an 18% annual percentage rate (APR) , it comes to $3,923 over
those months. So, if you were to plunk down the $3,000 to pay the balance
rather than let it compound, you'd see substantial savings—nearly $1,000.

Emotional Detachment
Personal finance matters are business, and business should not be
personal. A difficult but necessary facet of sound financial decision-making
involves removing emotions from a transaction.

Making impulsive purchases feels good but can significantly impact long-
term investment goals. So can making unwise loans to family members.
Your cousin Fred, who has already burned your brother and sister, will
likely not pay you back, either. The smart thing to do is decline his
requests for help—you're trying to make ends meet also.

The key to prudent personal financial management is to separate feelings

from reason. However, when loved ones are experiencing real trouble, it
pays to help if you can—just try not to take it out of your investments and
retirement.

Many people have loved ones who always seem to need financial help—it
is difficult to refuse to help them. If you include planning to assist them in
real emergencies using your emergency fund, it can make the burden
easier.

Breaking Personal Finance Rules

The personal finance realm may have more guidelines and tips to follow
than any other. Although these rules are good to know, everyone has their
own circumstances. Here are some rules prudent people, especially young
adults, are never supposed to break—but can break if necessary.

Saving or Investing a Set Portion of Your Income

An ideal budget includes saving a portion of your paycheck every month

for retirement—usually around 10% to 20%. However, while being fiscally
responsible is important and thinking about your future is crucial, the
general rule of saving a given amount for retirement may not always be the
best choice, especially for young people just getting started.

For one thing, many young adults and students need to consider paying
for their biggest expenses, such as a new car, home, or postsecondary
education. Taking away 10% to 20% of available funds would be a definite
setback in making those purchases.

Additionally, saving for retirement doesn’t make much sense if you have
credit cards or interest-bearing loans to pay off. The 19% interest rate on
your Visa card probably would negate the returns you get from your
balanced mutual fund retirement portfolio five times over.
Finally, saving money to travel and experience new places and cultures
can be especially rewarding for a young person who’s still unsure about
their life path.

Long-term Investing/Investing in Riskier Assets

The rule of thumb for young investors is that they should have a long-term
outlook and stick to a buy-and-hold philosophy. This rule is one of the
easier ones to justify breaking. Adapting to changing markets can be the
difference between making money or limiting your losses and sitting idly by
and watching your hard-earned savings shrink. Short-term investing has its
advantages at any age.

Common investing logic suggests that because young investors have such
a long investment time horizon, they should be investing in higher-risk
ventures; after all, they have the rest of their lives to recover from any
losses that they may suffer; however, you don’t have to take on
undue risk in your short- to medium-term investments if you don’t want to.

The idea of diversification is an important part of creating a strong

investment portfolio; this includes both the riskiness of individual stocks
and their intended investment horizon.

At the other end of the age spectrum, investors near and at retirement are
encouraged to cut back to the safest investments—even though these may
yield less than inflation—to preserve capital. Taking fewer risks is
important as the number of years you have to earn money and recover
from bad financial times dwindles, but at age 60 or 65, you could have 20,
30, or even more years to go. Some growth investments could still make
sense for you.

What Is Personal Finance?

Personal finance is the knowledge, instruments, and techniques used to
manage your finances. When you understand the principles and concepts
behind personal finance, you can manage debt, savings, living expenses,
and retirement savings.

What Are the 5 Main Components of Personal Finance?

The five main components are income, spending, savings, investing, and
protection.

What Is an Example of Personal Finance?

One of the key ideas behind personal finance is not to spend more than
you make. For instance, if you make $50,000 a year but spend $65,000,
you'll end up with debt that continues to compound because you'll be
spending more than you make to pay for past expenses.

Why Is Personal Finance So Important?

The concepts behind managing your personal finances can guide you in
making intelligent financial decisions. In addition, the decisions you make
throughout your life on what to buy, sell, hold, or own can affect how you
live when you can no longer work.

The Bottom Line

Personal finance is managing your money to cover expenses and save for
the future. It is a topic that covers a broad array of areas, including
managing expenses and debt, how to save and invest, and how to plan for
retirement. In addition, it can include ways to protect yourself with
insurance, build wealth, and ensure wealth is passed on to the people you
want it to pass to.

Understanding how to manage your finances is an important life-planning

tool that can help set you up for a life without debt; you gain control of
financial stresses and have a way to manage the expensive surprises that
life can throw at you.