Friday, May 13, 2011

Personal Financial Planning

Financial anxiety is one of the most common stressors in life.  Whether it’s not having enough money, not knowing how to manage the money we have, or worrying about having money in the future, the unknowns of finances can grip us unlike anything else.  And unless you were one of the lucky few to have received sound financial advice from an early age, money management can be extremely intimidating and confusing.   

This is especially the case when facing major life changes, such as marriage, moving out, taking out loans to go to school, buying a new or used car, retirement, etc.   Even the terms themselves can be daunting to a newcomer!  Stocks, bonds, mutual funds, term vs. whole life insurance, estate planning—all concepts that are vaguely familiar but commonly misunderstood. 

What if I told you there is a course you can take that covers all these topics and more in a comprehensible and entertaining way?  In Personal Financial Planning, instructor Frank Paiano discusses important concepts such as: setting financial goals, money management, savings and checking accounts, credit, managing debt, mortgages, transportation costs, buying a new vs. used car, all the different types of insurance, stocks, and more!

An example of the useful advice you’ll find in this course involves determining when you should use credit.  In one of his lessons, Paiano divides credit purchases into “good” and “bad” credit.  Examples of good credit would be: the purchase of a home, paying for higher or career related education or making home improvements.  All purely entertainment-based purchases, made with “consumer credit,” would be considered “bad credit” in that they can interfere with effective money management and lead to bad financial habits.

If you’re feeling lost when it comes to budgeting or financial planning, check out KnowledgeCity’s free preview of Personal Financial Planning.  I can feel my blood pressure lowering already.

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