How Engineering Can Translate to Financial Wellness
Engineering takes a certain level of thinking that may only apply to the engineering world, from thermodynamics and physics to structural integrity and the biological composition of certain matter only apply to engineering. Still, if one were to look deeper into how to solve these problems, those processes could translate into financial wellness.
Analytical Thinking
Engineers are taught Analytical Thinking, or how to break down complex problems into digestible parts. This directly translates into financial wellness because Analytical Thinking is not just for engineers, it can be applied to anyone who wants to understand personal finance issues such as budget and debt management. If one were to break down budget management with Analytical Thinking, then one could make a budget that fits a certain lifestyle with a certain amount of income. For example, one could use the "fifty, thirty, twenty rule". The rule states that: 50% of income goes toward bills, monthly fees, and debt repayment, 30% goes towards savings, investing, and IRAs, and 20% goes towards food and miscellaneous items.
Process Optimization
Process Optimization, or Efficiency Improvements is “the process of identifying and implementing strategies to complete tasks effectively and efficiently” (Webster's Dictionary). Engineers use this for all sorts of reasons, from blueprints and machining to structural designing and building, this is a common practice in the engineering atmosphere. This could mean finding more efficient ways to save, invest, or spend money for financial wellness. Applying Process Optimization, for example, can be used to figure out how to efficiently spend money at the store. Comparing store brands with name brands can be a common practice but comparing certain weights of food or supplies with their competitors can give you an upper hand. If you look at the bottom left of a box of cereal, and see that the net weight is 28oz for $13.99, and their competitor has a cereal that is 32oz for $14.99, you can compare prices for each ounce, you’ll notice that the competitors pricing is 13 cents more per ounce than the original box of cereal. Comparing is crucial if you want to spend your money efficiently and effectively.
Conclusion
By applying engineering principles and skills to personal finance, individuals can create more structured, informed, and effective strategies for achieving financial wellness. Whether through Analytical Thinking or process optimization, the methodologies learned in engineering can lead to better financial outcomes.
About the Author:
Noah Wise
BFC Content Creator
Noah Wise is a second-year Mechanical Engineering student... read more about him here!
