Section 1.1 Personal Finance Basics 7
Management is the process of organizing and using your resources to
achieve predetermined objectives. It involves identifying resources, setting
goals, making decisions, solving problems, and evaluating the results.
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yourself.
Personal Side of Consumer Choices
Some people always seem to know what they want and where they are
going. They seem to know what is important and what is not worth serious
attention. This sense of direction and purpose is often a key factor separating
the people who achieve what they want from those who do not. The good
news is that you can develop this sense of direction and purpose. It requires
a clear understanding of personal needs, wants, values, goals, and standards.
Needs and Wants
Consumers can purchase products and services from whomever they
choose. Goods are tangible items that can be touched, used, and purchased,
such as food or clothing. Services are intangible activities that another person
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Cheryl Savan/Shutterstock.com
People who are financially competent determine the differences between
needs and wants and spend accordingly.