According to a CNBC report, around 58% of Americans live paycheck to paycheck. Additionally, 70% admit to experiencing stress about their finances, a feeling that has grown since the start of the Covid-19 pandemic. Moreover, another finding from this report indicated that most Americans don’t have an emergency fund for times of need. These are just some reasons why a money management course is essential for financial well-being.
After all, an exemplary process of managing personal finances—that includes savings, budgeting, investments, and expenditure—can alleviate financial stress and ensure financial success. Simply put, individuals must ensure they have the tools and strategies to handle their money, underscoring the importance of learning from resources such as a money management course. Further, these courses will also benefit professionals who want to specialize as money managers and personal finance experts.
What is Money Management?
As an integral part of personal finance, money management refers to saving, budgeting, investing, spending, and tracking expenditures. The onus is on the individual to set financial goals and make smart decisions to achieve them. A few examples of what money management can look like are:
- Planning for retirement
- Saving for education
- Making a personal budget
- Creating an emergency fund
- Paying off debt
- Investing in a mutual fund
As you can see, the importance of effective money management emerges from the sense of economic well-being it provides. The American Psychological Association (APA) recommends planning—a critical aspect of money management—as a proactive step to handle money stress. “Committing to a plan can reduce stress,” says the report, and one money management tool for doing that, as mentioned above, is creating an emergency fund for unforeseen circumstances.
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How Does Financial Planning Help in Achieving Financial Success?
Financial planning is integral to money management and can lead to financial success in numerous ways. Two primary outcomes are:
- An Increase in Savings
A financial plan or a budget entails thoroughly understanding your income and expenditure. This highlights the areas where you can reduce your cost of living, prevent overspending, and, consequently, allow you to save more.
- Smart Investing
A financial planning exercise allows you to identify the amount of money you can invest and grow. You can, thereafter, use the learnings from resources like a money management course to make intelligent investing decisions. Moreover, you will be better equipped to choose the financial instruments for your investments based on your risk appetite and goals.
Simply put, applying the principles from a money management course will give individuals a complete picture of their finances, allow them to set achievable goals, and make mindful decisions to achieve them. Additionally, specific money management courses on impact investing and intelligent investing on the Emeritus platform are tailor-made for individuals prioritizing investment in their plans.
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Benefits of a Money Management Course
At the heart of it, a money management course provides an essential life skill for individuals. Knowledge of saving, budgets, debt, and investment fundamentals can prevent financial distress. For instance, you will learn how to build an individual’s credit score, save for retirement or the child’s education, and not build up debt, among several important lessons. As mentioned above, it can not only provide financial stability but even financial success.
Simply put, learning how to maximize value from your income is key learning for your economic well-being. Furthermore, as the world’s most famous and successful investor Warren Buffett said: “If you don’t find a way to make money while you sleep, you will work until you die.” A money management course will provide you with the tools to do so for yourself and your customers.
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How Can Emeritus Courses Help Financial Professionals Advance in Their Careers?
Overall, any financial course on Emeritus has tremendous value for professionals due to the following factors:
- They are created in collaboration with the best universities and faculty around the world
- Further, they are tailored for people across age groups, requirements, and experience
- Additionally, they are designed keeping key learning outcomes in mind. Therefore, they are unique, interactive learning experiences and include assessments, hands-on activities, and skill applications
- Moreover, the courses can help learners tackle present challenges in the industry while preparing them for future trends and risks
- Importantly, these courses meet the standards set by Quality Matters, a global organization that provides quality standards for online and innovative digital teaching and learning environments. The rigorous criteria ensure that all learners invest in quality education
Moreover, a money management course on Emeritus will enhance your ability to provide sound financial advice to your customers. Therefore, you will be able to maximize their returns. Additionally, the skills provided in these courses will add to your understanding of your organization’s finances. This allows you to manage that money better.
To conclude, a money management course is essential from an individual and organizational perspective. Emeritus provides many finance courses to choose from and build this critical skill set.
By Abby Kane
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