Personal Finance Basics: Definition

Personal Finance Basics: Personal Finance

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What is Personal finance?

Personal finance is a subject related to a person and his wealth, which teaches how to manage money and control money as well as make the most of available money,

In other words: We can refer to a person’s” personal finance “as a matter of making money, and spending money, as well as money and financial decisions related to that person’s savings and investment,”

Each one of us has our own way of handling money, and the way we manage this different money is called “Personal Finance” in the language of finance.

This way: Personal finance is an important topic to handle money, and this topic covers all kinds of financial decisions like our domestic, family financial situation and ways to earn, spend and save and invest personally.

What is included ?

Friends, personal finance is a very big topic, which is related to the money transaction by different people. In this way, if you talk about what comes inside personal finance. So if you pay a little attention to yourself and think that.

If you are told about the behavior of money and how you do it, then in this way, whatever transaction you see related to money is a subject related to “Personal Finance”.

Such as – Income, salary, budget, monthly expenses, bills payment, shopping, bank accounts, credit cards, home loan, personal loan, stock market portfolio, investment, life insurance and health insurance and other insurance, mortgages loans, and all the way. K loans/loans, our assets, our liabilities, and our future planning like – retirement, child education, and holiday trips.

All such things which are related to your money, everything is related to your “personal finance subject”. Different categories of personal finance Like I said earlier – personal finance is a very big topic, and in this way, all the things that come under personal finance can be divided into certain categories, so that we can easily understand the big topics of personal finance, like as follows:

Budget:

In which all our types of income and expenses are covered.

Insurance:

All types of insurance plans that we take on time, such as – Life Insurance, Health Insurance, home, car, or other insurance.

Tax:

In which there are some major taxes – Income Tax, TDS, and others.

Saving and Investment:

Financial Planning – In which we plan and work on the expenses of financial freedom, retirement, education of children, marriage, and other things,

Apart from this, very categories of personal finance can be made, but these five categories are considered the most prominent. And maybe you have faced such problems many times. And often by the end of every month, your account will be empty And this goes on with most of us. Money comes and goes away. And we often say that – should I have earned a lot of money, but I have said it only when money lasts.

Every person’s personal finance is different –

Money is a very personal subject, and if you look carefully, you will also understand the fact that every person’s ability to earn money is different from one another. And rarely do you see two people who have the same way of earning, spending, saving and investing. This means that “every person thinks about spending money, saving, and investing too differently from one another.

And this is the reason that managing money becomes a personal subject, and hence this topic of managing money is named. Is it important to understand PF?

Friends. We all have the same objective after good studies, good marks, admission to a good school and then getting an excellent degree.

“Make more money”

There is no need to tell how much money is necessary to live a better life, you and I understand the importance of money well. In such a way, we all earn money for our livelihood in some way, and we have every right to spend that money. And that’s how we earn and spend, and between this earning and spending we also need to save some money for our future,

And to earn, spend, save and invest a person is called “managing money“. In such a situation, many of us manage money well, and in a few years they accumulate a lot of money, and they go ahead in life, by managing money well and investing better. They get a nice house, car and fulfill their dreams. But most of us are not able to manage money well and we get a lot of money, but after some time our hands are left empty again.

Conclusion:

If you also have such a question in your mind that how to manage money, then you have to make some improvements in your personal finance, that is, how to manage your money –

Friends, I hope you have liked this topic of personal finance,

 
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