Reflection: Personal Finance Basics
When it comes to personal finance and literacy have learned that is very important to not only pay off debts but also to resist the temptation of borrowing money when possible. Budgeting and paying bills on time will only influence your financial well-being in a small way if you continue to borrow money and acquire new debts. Having a budget in place is the first step
to a solid financial plan, however the biggest impact is determined by your ability to stay out of debt and avoiding any loans that are not of necessity. Making Good Financial Decisions
In the coming months I plan to come up with a financial plan that will help me spend more wisely now and well into my future. In the past, I have spent money on things that were not
necessary, and often on things that were wasteful. By creating aa wait-and-see list, I will be able to save a lot of money on sudden purchases. Eating fast food and dining out has taken its toll on my wallet and waistline. By preparing and eating meals at home I will save money and create healthier eating habits for myself. Taking the time before shopping to prioritize my lists by focusing only on the things that are needed, I will save big on items I don’t necessarily need or have the funds for now. With a list in place before heading to the store, instead of a dollar amount, I can spend less on things I do not need. Growing Financial Freedom
Avoiding unnecessary purchases, furthering my education about credit cards and taking time out to learn more about investments and savings are all things I could benefit from. Spending money I don’t have on things I sometimes do not even need has been a problem for me
in the past. I will make it part of my plan to avoid these unnecessary purchases. While avoiding debt is the greatest part of my financial plan, in the instance that I have to borrow money I should
2
