It is a very thankless task to talk about personal finance. Most common people in the Western World barely make ends meet and constantly have to juggle finances in order to survive and still have some kind of a proper life. Having a high-brow banker walk in and give them lectures how to handle their own money is probably the last thing they would like to hear. Particularly if the said banker’s main problem in life obviously seems to be with which gold credit card will he pay for the business lunch and which client is going to be billed for it.

As a regular bloke or lass, you do not have a “securities portfolio” or any such nonsense. You may have a bank account, a credit card, a loan that you are paying off, be it for a personal loan or for a mortgage, you have at least one income source, but more likely your household has at least two and if somebody asks you to invest your savings, all you can do is debate if to strangle that person or to laugh. Nevertheless, it would be wise to sit down and take a little time to muse about your own personal finance situation.

If you are not hopelessly in debt and need debt consolidation, then you are probably well off. Nowadays, not being up to your neck in debt is equal to being well off. Everybody has bills to pay, needs that have to be met, expenses that cannot be avoided and sometimes even calamities that need to be handled, which costs money. Nevertheless, all of us have spent money on things that were not needed and sometimes such a frivolity meant the world to us.

The wisdom is where to draw the line. Managing personal finances does not mean that you need to open a savings account, take out a life insurance or not waste money when you feel like it. Managing your personal finances means that you use your money wisely and not get over your head into debts. Managing your personal finances means that if you encounter a calamity, or face an otherwise financial catastrophe, you nevertheless manage to not suffocate in financial chains, but outline a way out of the doom and also follow it up to the point where you get out of the red zone again.

It is highly unlikely that you are the next self-made billionaire and need not worry about a thing. It is on the other hand very likely that you have to work for a living and that you have a budget that needs to be properly allotted and handled. Furthermore, it is probably the case that you will need to blow off steam every once in a while and if you plan for such a need in advance, you can also afford it. Being able to handle and manage your own personal finances is not an easy task, but you can do it. You do not need a bigwig banker to sell you insurance, nor do you need an investment mogul to take your money and invest it where you cannot reach it.