In financial management, this book is critical since it provides on an insight on the basics of financial planning, how to manage money and investments and mechanisms of solving life changes. The book dwells on the principles as well as the fundamentals of personal finance. In this regard, the book provides a real-life example on the addiction of the credit card which most individuals are confronted with terming it as a dangerous debt in a person’s pocket. Indeed, the explanations of the book are imperative in helping an individual manage ‘their’ finances thus sufficient for review.
This book is written by Arthur J. Keown. Keown is a renowned Professor of Finance in Pamplin College of Business. In 2001, Keown was named to be the first and only Alumni Distinguished Professor in a list of ten Distinguished professors in the college. As a member of the academy of teaching excellence, Keown has made several achievements. These achievements are manifest through a series of awards such as the Wine Award for teaching excellence, an honorary award by the Virginia State in the Outstanding Faculty Award for Excellence in teaching and research.
Moreover, Keown was honored by the Student Government Association on the Pylon Away award. These Excellence awards indicate the skills as well as the capability of the writer in writing the book. In the book, the author lays emphasis on the various principles of financial planning. These principles are critical since they provide an individual with strategies which help solve underlying financial decisions as well as cope with financial changes in the future. The author also enlightens the reader on the money management mechanisms with a real-life example of a credit card. Even though, the credit card helps an individual to purchase products without exchange of cash it emerges to be one of the most dangerous and addicting ways of accumulating debt.
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Moreover, Keown gives the readers the appropriate strategies of making investments as wells enhancing protection of the investments through insurance due to the rapid life cycle changes. In comparison with other books, this book provides an individual with the relevant mechanisms of managing personal finances. Its uniqueness is attributed with provision of relevant strategies of managing and protecting money due to the life cycle changes. The author sufficiently supports his arguments through the use of graphs, charts as well as real-life examples such as the credit card.
This makes the book useful to the financial analysts as well as consultants in providing guidance to their clients on the management of their finances. In determining the individual credit worthiness of an individual, the book provides additional information making it successful in its general purpose. According to the author, a lending institution should dwell on the collateral, condition, character, capital, and capacity of an individual.
This information makes the book useful for financial institutions and other credit lending institutions to evaluate an individual’s credit worthiness before issuing loans thus avoiding defaults. In my own point of view, credit cards are quite addictive thus not convenient in the making of payments. Credit cards render an individual with fake financial confidence an aspect which drives one into a huge sum of debts. With the rapid life changes, the debts inhibit an individual from making sustainable financial plans for the future.
This makes an individual to focus on the immediate consumption trends rather than a future saving and investment plan. Due to this, I would recommend the book to all individuals who are inflicted in the use of credit cards to enhance control in the management of finances. Moreover, this book is critical for all readers since it will give them strategies of coping with the life cycle changes in their tussle for enhancing a good financial future.
