Your personal finance has very few components. It just boils down to you and how you handle your money. There are many varying issues such as how you earn your money, how you spend your money, etc. It would seem that your personal finance and money are the same thing. They are not. Although they may be different, they are also similar in many ways.
Your personal finance spans through how you use money in your life. Money is an inanimate object. The key technical component and tool of your personal finance is money. Money is the main tool- but it is not necessarily the most important part of your personal finance. Your habits are more important than money.
One of the key points to understand about money is:
Money is amoral.
What does it mean that money is amoral? It means that it is neither good or bad. There is no evil nor is there good on money alone. Money by itself is not the answer to any issue or question. Most people have the misconception that money is the answer to all their problems. When you realize that money is amoral, you will realize that it is merely a tool- just like fire, a hammer, a saw, etc.
It depends on how you use that tool that makes the tool worthy or unworthy. It depends on how you use that tool that makes the tool good or bad. For example, fire is also an amoral tool. You can use fire to burn a house down, or you can use it to cook your food or heat up the house. It is all on how you use it.
Money is the same thing. When you know how to properly use smaller amounts of money, you will be able to handle larger amounts of money. There are many cases of lottery winners going bankrupt because they do not know how to handle that amoral tool called money. Money became a curse on their lives rather than a blessing.
With you personal finance, money is an important tool. If you use it to amass more debts especially on items that go down in value (such as cars, toys, etc.), then money will become a curse. It was used to increase your liability. If you use it to clear your debts and simplify your life, then money will become a blessing because it has given you options and eliminated complexities in your life.