Why personal finance is important ?

Personal finance is the study of personal or household, company or organization, their income, expenses and savings as well as how to invest.

It is a plan in which we plan expenses, savings, budgets, investments, retirement plans and future plans.

We can call personal finance the way we look at money, in which we understand how much we value money.

Personal Finance

In Personal Finance Management we are studying about Income, Budget, Savings, Investing and Protection.

Next Gen Personal Finance
Personal Finance

Income

Income is the money you get About the work done.Income includes monthly salary, commission, gift, dividend, government payout, as well as bonuses and other income source.

Budgets (Spending)

Budgets is the opposite of the income term.

As you can see in the income, the monthly salary, commissions, gifts, dividends, government payout, bonuses and more income sources collect the money.

In these reverse budgets

Money is spent on rent, monthly rations, credit card bills, light bills, travel expenses, shopping, donations, taxes, and more.This way you have to spend money.

Don’t Spend More Than You Earn.

Charies Dickens

Saving

If your income is more than your expenses, then you are definitely in a favorable position.

In this situation we can increase our money by saving and investing more.

If you don’t like banks,you could keep the money as cash.there is an the old saying he keeps his money under the matters.

Most people have a saving with bank account you might also paying pension funds.

We are save money for many reasons such as

  1. Pease of mind
  2. College funds
  3. Vaccination
  4. Emergency fund’s
  5. Household
  6. Rainy season
  7. Travel
  8. Medical
  9. Retirement

Investing

If you are not happy with the money in the bank at interest rate.So there is no reason to worry.

Because there are so many options to invest now.

The best option is to buy the stock with the right amount of choice.There is a bit more risk involved.But this is the only way to get your money back many times over.

Apart from the stock market, you can also invest in real estate.The demand for this is increasing day by day.So it would be wise to invest in it.

Mutual funds are also a good option.

We can also invest in bonds.

Commodities are a good option.

And if you have a little too much money, you can play a big game.

You can become an angle investor by investing in someone’s startup.

Or you can start your own business instead of investing in other startups.

Protection

When you die what will happen to your money and other possession?

Make sure you have a will.

Protecting the financial interest of yourself and loved ones.

Example.

  1. House Insurance
  2. Car Insurance
  3. Income
  4. Insurance
  5. Home content insurance cover

They will protect to you should anything happens to your home ,job, furniture or your car , etc.

If you want everyone to enjoy your life, then you need to do financial planning.

So let’s start finance planning from today.

What are the benefits of financial planning?

There are numerous benefits to financial planning.

From emotional and health related benefits to social and economic benefits.

Financial planning has a positive effect on our lives.

They are as follows

  1. The financial planning process helps you set & achieve goals.
  2. Financial planning is a great source of motivation and commitment.
  3. Financial planning provides guidance for action and decision making.
  4. Financial plans determine performance criteria.
  5. Financial planning have some additional benefits of emotional and mental health.
  6. Financial planning is shown to improve economic results.

If you find this information useful, please share it with your loved ones.

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