We all have to deal with finances. It’s a part of day to day life. You have a certain amount of money coming in, you’ll have a set amount of money going out on necessary bills and other costs, and then you’ll be left with a set amount of money known as your disposable income. It’s going to take a fair amount of effort to manage these, as even if your incoming money is stable and regular, your outgoings may change significantly over time. Perhaps your insurance premiums will go up, maybe you’ll take out a loan and have to make monthly payments that you didn’t before, you might find that you have to move house and have certain costs attached to the process, maybe your family will grow and you’ll find yourself covering the costs of a little one. There are all sorts of things that can happen that will change your circumstances, but you’re going to have to keep a grip on your finances and focus on financial management to ensure that everything that needs to be paid is paid on time.Some of us are financially savvy and know the ins and outs of financial management through years of practice and research. But many of us find ourselves simply going with the flow and can make mistakes that land us in financial trouble. A good way to avoid this is to engage with accounting - whether you get to grips with accounting yourself or whether you hire a professional accountant. The infographic below will show you how accounting is changing and what you might need to bear in mind when incorporating accounting into your personal finances.
Infographic Design By University of Alabama Birmingham