So you think you are fully equipped with every bit of knowledge you need because you just completed your classes on personal finance. You know the basics of investment, the retirement options, and many other essentials that the books and instructors told you to digest in order to achieve that stable financial state when you reach a certain age. However, most individuals are not aware that while mastering the technicalities of finance is beneficial, it is still the human nature that often cause long-term conflicts on one’s finances. A four-walled classroom will never be enough to prepare you fully as you delve into the financial world as it is still experience that will accurately guide you as you take hold of every cash you acquire in your working years.

For example, there is no way your lectures inside the classroom will affect how you choose to utilize your extra funds after you allocate your income. It doesn’t matter if you know that even the smallest glut of $500 will come in handy if you put it in a money market, or if you establish an emergency fund out of it. Your decision will always will always be based on your level of discipline. So lesson number one, it’s either you go for that designer dress and cram your way to sufficient savings or you control yourself and meet your target age of retirement instead.

Now, never assume that merely starting on your emergency stash of cash is enough and you may purchase that expensive car you’ve been eyeing for years after managing to begin your savings. Delaying work on building your portfolio may result to regretful consequences, especially since interest rates vary from time to time. Try investing on growth stocks instead and you will certainly reward yourself of something more satisfying than owning a pricey ride. Moreover, postponing such investments may also result to an extended period of debt.

Lastly, you probably did not tackle anything about emotionally detaching yourself when handling your finances. Sure, it is satisfying to be able to hand your relatives gifts every now and then, and maybe you owe a friend and would like to give back by treating her to an extravagant dinner but sadly, these moves are not exactly wise if you have a financial goal that you would like to achieve at a specific time. While there is nothing wrong with giving, do it moderately, and avoid letting your emotions meddle with your decision-making. Remember, when it comes to finance, it will always be logic over impulses.