Nine areas of finance management

When we think about finance, we usually think about earning and spending money. However, there are seven other areas you need to take care of so you can reach financial well-being and financial security. What are those areas? And why are they so important?

Anna Daria Nowicka

Earning money

Are your earnings adequate to your competences? Many clients who use my career coaching services only when they start looking for a new job find out that their salaries have actually been lower than the current market rates, and that they have been lower for quite some time. Employers rarely raise salaries on their own, unless we have explicitly asked them for a raise.... Are you able to negotiate a higher rate if your work actually became worth more? It is natural that payroll reports or statistics will not tell us exactly how much we should earn; our earnings are not only the derivative of our knowledge and skills but also of our work attitude and effectiveness, our personality, ability to show what we bring to the table during the recruitment process, or the situation on the local job market. To some degree they also depend on our luck.

Spending money

Do you spend money sensibly, in a manner that is adequate to your financial situation? Or maybe you are living beyond your means or spending all your salary and living in constant fear? Some of my financial coaching clients find it extremely difficult to maintain discipline and refrain themselves from compulsive buying or from buying things that they don’t really need, that they simply bought on a whim, at the spur of the moment, rather than think whether or not the purchase was reasonable. Many people are more susceptible to the “Buy it. You deserve it!” slogans, and then find out that they spent much more than they had intended in the first place. With each purchase, you have less money on other expenses or less money to put aside or invest.

Even if you have an excellent salary and you don’t think you need to curb your spending, it is a good idea to learn how to manage your money wisely and make purchase decisions. It is also a good idea to teach that skill to your kids because it is indispensable for balancing your financial life and avoiding a lot of stress, even getting into debt.


 A lot of people think that they don’t earn enough to invest. Admittedly, you cannot buy an apartment to rent, a gold bar or a large block of shares if you have scant financial resources. However, investing is also about spending money to get competences that will help you earn more, to buy equipment that will make your job easier or to make decisions on how to best invest the funds you have, no matter how modest the sums involved. Of course, spending too much money on investments while neglecting important needs of your own or of your loved ones can also be a trap. As always, moderation and common sense is a must.