Is it Personal, or Finance?

A couple weeks ago I asked a question: Consider the phrase "personal finance," what part is more important, the "personal" part or the "finance" part?

There were no responses, probably because I posted the question on Mother's Day, but I thought about it a lot and decided to write a quick blog to share my thoughts. To me, the "personal" part is more important. It's the first word you read and you usually put your best foot forward. But more so because taking control of your finances gets personal. It forces you to realistically look at how you handle your money. Do you overspend on clothes? Gym memberships? Beer? Restaurants? Movie tickets? Do you underspend on savings? Investments? College funds? It forces you to get real with your spending habits and behavior.

Then comes the part where you realize what needs to be different in order to get to a better place, financially speaking. And really, when you think about it, changing your spending habits means changing what you do. I mean, if you decide to spend less money at the bar then you're probably not going to the bar as much.

Behind all that, the "finance" part feels secondary. It deals with your money, your income, and outgo (aka spending), which is important but it's guided by how you handle it. How much do you bring in and how much you let go out. It's easier to pay more attention to the 'finance' part because it's easy to measure. All you have to do is see how much is left in the bank. It's much harder to measure if what was spent was spent wisely and well. That's the "personal" part. And it controls everything.