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Personal Finance is the New Intelligence

Yes, you can play with money, provided that you know how not to make it play with you.

Photo by Quantitatives on Unsplash

One may wonder, why this thing is getting so much hype now whereas People have been dealing with finance all the time since the beginning of civilization. Well, all the hype it is getting is quite worthwhile because finance here is boiled down to its personalized form which is PERSONAL FINANCE, which offers financial literacy on an individual level so that one maintains certain strategic plans while dealing with all kinds of financial stuff (earning to spending to saving to investing) with a purpose to achieve personal and family financial goals.

Why is it necessary? :

Of course, people had to handle these things in earlier times as well and they did too only the difference is that not everyone could do it well. It was more of an experience rather than science to them. They either thrived on it or failed which basically dependent mostly on their discretion and experience and very little on their formal knowledge (which is still very low in this arena). We have seen our mothers taking out a little portion of daily/monthly expenses and keeping them somewhere safe for future needs or saving up little by little to buy ourselves a bicycle or that refrigerator that we use till now. So from them saving up for buying those things to us saving up for that shortlisted item on amazon, it’s the same trick. But this is not enough, especially in today’s capitalistic reality where money is considered to be well, if not everything, then definitely most of the thing. The older trick is far from the good it could get if people are made accessible to enough knowledge and formal education on personal finance that will help make good financial decisions or better if they develop a sense of financial awareness and consciousness within them which will ultimately reflect on their financial work. So, due to the great economic potential, it offers and since there is an increase of various experimental studies and programs/courses resulting in significant improvements in this arena, personal finance is being utilized and popularized now more than ever.

According to a research article, educators, financial experts consider it essential for the prosperity of youths. It is quoted in that article,

“Most recent grads strike out into real-world with no plan for making money, a highly developed sense of spending money and a poorly developed sense of saving it.” (Lowell, 1995, Preface)

Guess the solution? Well, what could be better than personal finance which authoritatively claims,

Smart planning is the essence of personal finance.

Needless to say, personal finance is way more of a necessity than the treatment it gets as something luxury or at least optional.

How is it different? :

For high-wealth individuals, financial consultancy is very common to be carried out in such cases, but what personal finance differs from that, it also works for both middle income and low-income individuals. It encourages every person to think and plan about money and monetary stuff whether you have enough or not. If one does not have enough money it will help him/her seek ways to increase money and if one has enough money it will tell what to do with that.

It has a popular claim and that is, with personal finance,

“You will not only be able to make the most of your earnings but also be able to make the most of your savings”.

Like, if you got thirty dollars for saving per month it will not ask you to simply keep saving them but will ask you to save in a way so that you can utilize it after a certain period like investing in temporal businesses, or buying stocks or mutual funds. That way, you will not simply accumulate an anticipated amount of money but rather you get to try your chance at adding to your surplus money or even losing them altogether if not planned properly and between these two lines stand our saver, Personal finance, the science of strategic planning in every aspect of financial process through which you can reduce your failure rate to the lowest.

No doubt Personal Finance highly encourages you on investing. It is the science that will make you want to expand your resources. “It will ask you to wake up the “Businessperson ” within you”. And if you say something like “ I know nothing about it”, it will simply answer,

“ That’s why I am Here”


Strategies for personal finance cannot be generalized since taxes, laws, and markets vary from place to place. So, there are no fixed principles for the regulation of personal finance. But, according to University of Chicago professor and social scientist Harold Pollack, “personal finance advice is simple and straightforward” and “one can actually fit all the investment advice one will ever need on a single index card”. He, alongside personal finance writer Helaine Olen, wrote a book named “The Index Card: why personal Finance Doesn’t have to Be Complicated” where they suggest certain pointers for good personal financial planning, some of which “are universal while the others are debatable” according to Zack Friedman, another financial expert.

Harold Pollack’s 9 personal finance tips from his original index card that got viral on Twitter are as follows:

1. Max your 401(k) or equivalent employee contribution.

2. Buy inexpensive, well-diversified mutual funds such as Vanguard Target 20xx funds.

3. Never buy or sell an individual security. The person on the other side of the table knows more than you do about this stuff.

4. Save 20% of your money.

5. Pay your credit card balance in full every month.

6. Maximize tax-advantaged savings vehicles like Roth, SEP, and 529 accounts.

7. Pay attention to fees. Avoid actively managed funds.

8. Make financial advisors committed to the fiduciary standard.

9. Promote social insurance programs to help people when things go wrong.

In a nutshell, the main purpose of personal finance is to develop financial consciousness among individuals. It is the realization that things can actually take a turn for the better if we start dealing with them smartly, strategically, and consciously. It is the understanding that finance is where we should give our more attention and finance is something that we should start taking very personally and more seriously.










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Nur Ayesha

Nur Ayesha


Observer. Learner. Thinker. New explorer of this thought generating and thought provoking game.