A short summary of personal finance

A short summary of personal finance

Financial planning and management should be the duty of any individual to save themselves in days of crisis.  The process by which it is managed and updated is called personal finance. The process of personal finance includes various factors like to strike a balance between spending and saving the monetary resources over a period.  The factors, which control this balance, are the life events of future and the financial risks. Personal finance is often taken care by banking products, investments along with insurance. These acts also give an individual various benefits like tax savings, retirement plans and social security.

The personal financial planning can be broadly categorized in six categories:
•Financial position: It determines the input and output of the assets and liabilities. This decides on the goals that one might be able to achieve.
•Adequate Protection: It determines to save a household from risks that are unforeseen. To counter them, the best possible way is insurance.
•Tax Planning: The largest form of expense is tax. So planning it properly is a must.
•Accumulation and Investment: This helps to decide one’s money for purchase on a huge scale like real estate, etc.
•Retirements: One should have a plan on running the household post retirement. Easy and calculated savings forms the foundation of this plan.
•Estate Planning: It forms the will and management of assets after the death of an individual. It also includes the distribution of the wealth and asset.
Personal Finance does not only secure the future of an individual but also helps one to enjoy the present.

 

What's New?The latest

Amber Heard donates $7 million settlement to charity

Amber Heard donates $7 million settlement to charity

Amber Heard’s divorce ordeal might have been painful for Johnny Depp and Amber but it was the complete opposite for two charity organizations that will receive the settlement money. The two organizations that she is sending the donations to are the American Civil Liberties Union, to aid in the…

CONTINUE READING

Are there pitfalls to online banking?

Are there pitfalls to online banking?

With easy access to the internet, anyone can have access to a multitude of things – we can get quick advice or more information of things, buy and sell things online, limitless choice of entertainment and even banking services, all at the tip of your fingers! It is all cyberspace, after all,…

CONTINUE READING

How to become a millionaire?

How to become a millionaire?

We all want to be rich some of us do not aspire to be a millionaire, but simply rich enough so they can live comfortably. And on the other hand you have those whose only goal in life is to become a millionaire, which is okay in case you don’t have any other dreams or aspirations. So if you…

CONTINUE READING