What is a primary goal of personal financial management?

The primary goal of personal financial management is building wealth. This encompasses not only saving and investing money but also making informed decisions about spending and budgeting to grow financial resources over time. Effective personal financial management involves creating a financial plan that includes setting short-term and long-term goals, such as saving for retirement, purchasing a home, or funding education.

By focusing on building wealth, individuals can achieve greater financial stability and security, which allows for more opportunities and the ability to handle unexpected expenses or life changes. This goal aligns with sound financial principles that prioritize accumulating assets, achieving financial independence, and ensuring a comfortable lifestyle.

In contrast, increasing expenses, maximizing debt, and reducing income would not contribute positively to personal financial health. Instead, sound financial management encourages a balance of income growth and prudent spending, all aimed at enhancing one's overall wealth and financial resilience.