Do You Need to Be an Economist to Manage Personal Finances?

[Mika]

In order to manage your finances, you need financial literacy. Financial literacy means skills to manage your money. This leaves a burning question.

Do you need to become an economist to manage your personal finance?

Well, the truth is you do not need to become an economist in order to take control of your personal finances. You don’t need to study economics in college and university to learn how to manage your money.

What you need is knowledge and skills to minimize your expenses, and maximize your income; knowledge on when to invest, how long to hold your investment, and when to sell your assets.

Do you need to become a financial genius to become an investor?

Well, you don’t have to become a finance genius. Investing is all about putting the right amount of money into the right asset at the right time. You can build your net worth through investment even when you are not a finance guru.

 

[anil02]

Finance management is technique, but for personal finance management I think one need not to be expert of finance management techniques. In these to invest money one should have knowledge of differ available option. In beginning it is better to take service of an expert and in future one will get enough knowledge of finance market.

 

[Jasmine]

You don’t need to become an economist to manage your personal finance, agreed; however, you still need knowledge of economics to manage your personal finances. Yes, you don’t need to become a finance guru to start investing, however, you still need knowledge of finance to invest and build your investment portfolio. With zero knowledge on economics and finance, it is impossible to manage your finances and build your income. Why do you think a lot of people end up becoming poor and only few people succeed? That’s because they don’t have money management skills.

You want to invest in the stock market. How can you invest in the stock market without knowing about stock market? How can you know about stock market without having knowledge on economics and finance?

Despite earning well, a lot of people are living a miserable life. Do you know why? Because they don’t know how to use their income to build wealth, they do not have any skills and knowledge to built their wealth system.

 

[Suba]

To manage personal finance, we don't need to be an economist or an accountant, because personal finance transactions are very simple, basically we only need to record receipts and expenses, after all, currently there are many software to record finances, both for personal and business. But to be an investor you must at least have expertise in their field, if you are a property investor you can at least estimate the price of land and buildings. As for stock investors, you must also be able to choose stocks that will make a profit, so you don't just buy stocks that will eventually turn out to be make a loss.

 

[anil02]

For a salary earner they have some limited amount to invest . In my country most of salary earner like to invest money in plans with which they can save income tax. Provident funds, Life insurance are most favorite among the salary earner. So to invest one must have knowledge of tax rule of the country.