List of 14 Importance of Learning Finance

The importance of learning finance is given below which are listed

from a different perspective. Hopefully, this will add value to your
learning phase.
1. Proper Understanding of Time Value of Money
2. Take Better Financing Decision
3. Aware of the Valuation of Financial Resources
4. Understand the Requirement of Evaluation of Investment
Opportunities
5. Able to Analyze Each and Every Opportunity Cost
6. Put Your Efforts for Maximization of Wealth
7. Acquire Maximum Return of Your Investment
8. Increase Your Analytical Skills
9. Manage Your Personal and Professional Life in a Better Way
10. Understand the Requirement of Forming a Portfolio
11.Deep Analysis of Sources of Fund
12. Understand the Investors Life Cycle to Choose Right
Investment Time
13. Understand Key Success Factors of Financing
14. Know-How to Get Your Cost of Capital and Analyze it
Take Better Financing Decision
The most important thing is to take a better financing decision as
every financing decision both for borrowing and lending is related
to cost and benefit. A better financing decision will bring financial
success which is expected by every individual.
Proper Understanding of Time Value of Money
If you actually want to know finance then you must know the
concept of the time value of money that with time passes the value
of your money is decreased. So, to ensure value maximization you
are to invest in a way that increases the net present value of your
wealth.
Aware of the Valuation of Financial Resources
As an investor of both money and capital market, please make sure
that you do proper valuation otherwise you may lose your valuable
financial resources. That’s why every investor needs to be aware of
the valuation of financial resources or instruments.
The Requirement of Evaluation of Investment Opportunities
The proper understanding of the requirement of evaluation of
investment opportunities will induce you to do capital
budgeting (NPV, IRR, PBP, MIRR, PI, etc.). Both long-term and
short-term investment opportunities need to be evaluated,
especially for long-term investment opportunities.