Understanding personal finances is as basic and fundamental as knowing the way home, knowing how to use the internet or the phone. The money is part of our lives , without which we can not have access to almost anything: from basic to leisure. Those who do not understand personal finances are hostage to a system created to keep people indebted and unable to invest. In other words, a system to keep people financially poor. Do not think that anyone who drives an expensive car, lives in a big house in a prime location and has luxurious habits, understands personal finances or is even rich. In fact, these are strong indications of indebtedness and total unfitness in personal finances. Often these people who "appear to be" are highly indebted in order to "maintain an image" that, if they dedicated themselves to their personal finances, would realize that they are at odds with their financial reality. The knowledge of personal finances will allow you to have a virtuous circle that begins with taking care of your budget and financial self-knowledge, culminating in investment and personal enrichment. Did you notice that we talk about "budget" and "financial self-knowledge"? It seems obvious, but it all starts with "getting to know each other financially". Believe it or not, many people don't even have the habit of looking at their bank statement - so how do they know their personal finances ? So it never hurts to say: the basics are the most important. Start by making a habit of looking at your statement frequently, identifying exactly how much you enter and how much you leave, to get to the crux of personal finance: spending less than you earn . It's elementary, isn't it? But a lot of people can't. Even worse; the ignorance of personal finances is so great that, believe me, there are those who think they spend less, when in fact they spend more. How is this possible? Credit mechanisms, with installments supposedly without interest, that "create a sense of purchasing power", without actually having one. And as the debt is constantly "rolled over", a false sense of default is created, after all, the bill is in the blue. However, the accumulation of installments and interest, at some point, will bring reality to the fore, so that it will be very difficult to reverse the situation. And this whole problem converges, again, to the same point: lack of knowledge and interest in personal finances . From the moment you acquire basic knowledge, so that your personal finances are an integral part of your routine, it becomes much simpler to spend less than you earn and, consequently, invest that difference. Monitor Spending (Controlling Your Finances) We talk about "spending less than you earn", right? But in many ways achieving this involves controlling your spending. And, as you cannot control what you don't see, it is essential in personal finances that you write down every expense you make. Right now, it doesn't matter if you do it through an application, a spreadsheet or using a notebook. The important thing is that you do it, so that you know exactly how you are spending your money , can identify possible waste and have your personal finances under control. And when identifying them (the waste), cut without mercy. Thus, you will learn how to control your finances.