Why Is Financial Management Necessary?

The Covid-19 pandemic, followed by the Russia-Ukraine War, is to blame for the current global economic downturn. Nations with ample financial resources and astute economists can easily manage an economic downturn. In contrast, less developed countries suffer massive losses and eventually go bankrupt. Sri Lanka is the most recent example of a country declaring bankruptcy due to a lack of a response strategy to economic pressures.

A single person who does not properly manage their finances faces numerous difficulties in life. Nobody knows what will happen in the future, so everyone must be aware of life's unavoidable circumstances and learn to deal with them through good financial management.

On April 25, the country celebrates National Financial Awareness Day, with the overarching message of achieving financial independence and sharing knowledge about wise money management. Financial independence is defined as having enough money from one's assets to cover one's entire living expenses.

Financial independence means no longer having to work for someone else, which means that all opportunities become available. The primary reason for commemorating this day is to encourage and support people as they strive for financial independence.