Understanding Personal Finance

Understanding your own finances is a underdeveloped skill for most people. We are more concern with clipping coupons and trying to find deals on groceries, than looking at the bigger picture of our personal finance. Don't get me wrong, saving a few dollars a week on groceries is important, but it's a drop in the bucket if you are getting charged an extra $100.00 a month for a high interest credit card. The effort it takes to find a good deal at the store, could just as easily be applied to switching to a lower interest card. Similarly it doesn't make sense to save money in a high yield savings or invest in the stock market if you have revolving credit card debt. You could be monitoring the price of gas, waiting for the best deal, but still be oblivious to a huge tax rebate or deduction. Saving a dollar here and a dollar there is good, but understanding your finances could save you thousands of dollars in the long run.

Helpful Resources
Below are some resources to help get a better grasp on your money. Learning to understand your own finances is not as scary as everyone thinks.

• I am a big fan of CNN Money, and especially like the Money 101 section. It teaches you everything you ever wanted to know about the basics, but where to scared to ask.
• Suze Orman show on CNBC, is another great show makes it easier to understand the do's and don'ts of personal finance.
• Read Financial Blogs, there are lots to choose from. Some of my favorites are:The Simple Dollar, Wisebread, Get Rich Slowly, Money Under 30, The Motley Fool, I will Teach you to be Rich, and Dumb Little Man.
  
• If you are feeling more ambitious start reading the Wall Street Journal either online or receive a paper subscription.
  

learning about finance can seem overwhelming, and you don't have to become an expert overnight. It is definately worth it, since just learning one thing may save you a lot of money.