How Mature are your Finances?

Budgeting, saving, investing can be difficult to some. Personal finances is almost as important as a family member and it needs a higher degree of attention than what most people are currently doing. In this blog, I will compare finance to the 3 stages of human life.

• As a Baby - This is where your personal finance is the most vulnerable. Money is your master - the slightest life mishap can derail your life significantly. As a baby, your personal finance needs to be nurture and taken care of. This means that you have to make sure that a big chuck of your money goes towards your savings and paying off debts. This is when you start figuring out a budget that works for you.
• As a Teen - As a teen, you personal finance is starting to be comfortable. You have savings, your debt is reduced to a minimum and you started looking at insurance to protect what you've accumulated. Unlike the baby phase, if you were to loose your job at this point you could go a few months before needing another one.
• As an Adult - Money is your slave. Your personal finance is matured to the point that you no longer need to check on it every second day. Some of your money has been invested and is working for you. Your budget is optimized. If you were to loose your job at this stage, you have other avenues that generates money for you. You could take a job that pays you less and still have a comfortable lifestyle or you could retire altogether. You have insurances to protect your assets.

The finance of most people never really leaves the baby phase. Some are able to reach their teens but only a few is ever going to reach adulthood. Which stage do you identify your finance?