Grade 9 Life skills : World of Work - Part 17
We are aware that financial stability is essential for an individual to survive and it is important that one manages his/her daily expenditure according to the daily income appropriately. If you manage your income and the expenditure well, you will be able to live a decent life. Here, you should be mindful of the fact that a person is required to use his or her earnings carefully, so that the basic needs in life could be properly addressed while reducing unnecessary purchases. We must always have a proper plan and manage our finance accordingly. People typically earn a salary, especially if they are a part of the world of work, where they engage in a job or a profession.
Personal financial management is essential as it helps us to prepare ourselves for emergency situations in life and maintain savings from future. A person can receive an income in the form of a salary, an interest of a fixed deposit, profits from a business activity, subsidiary, donation or a loan. On the other hand, our expenditure include consumption (living expenses), education, payment of loans and taxes, maintenance, insurance and investments. As a matter of fact, the sources of expenditure are being settled from the income we earn.
However, if a person manages his earnings well, it will make sure that he methodically uses a part of his or her income for the daily expenditure while taking necessary steps to maintain a bank account for financial security, saving money for future, spending within the income while avoiding loans and investing in fixed deposits or business (on safe grounds). Thus, financial management must be inculcated in each individual as it ensures one’s financial security and resistance to uncertainties in life. It will play a major role in eliminating unnecessary issues that hamper our contentment, mental well-being and peace.
by Mekhala Egodawele
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