May 25, 2024
personal finance

What is personal finance?

 

What is personal finance?

Personal Finance“, contains the story of an individual’s wealth it teaches,

  • How to handle money
  • How to control money.
  • Available wealth means how to make maximum wealth out of the present assets.

   We all earn money and there are some people among us who, despite working, make more wealth than the person who earns more. It is evident from this, we can have wealth only according to the knowledge of earning money, spending, saving, and investing. This information is given in personal finance. How to manage money for yourself. 





   Personal finance can be understood from many more examples. Talking in very simple words, if 1000 people are given 1000 rupees, the way of spending and saving of all will be different. This is Personal Finance.

   “ What is Personal finance” is an important topic to increase the understanding of money. In this, education on savings and investment is talked about along with domestic, family, and economic all earnings and expenses. Wishing money is a very easy task. But, saving it and investing it somewhere is a challenging task. If saving and investing were easy, everyone would have enough assets.

 

What is included in personal finance?

What can be included in personal finance? Can you tell in the comments before reading below? Many of us know this. What can be included in personal finance? You have to work hard to know about finance, and for this, you can read some books, and watch YouTube videos. Nothing is told about it in any educational institution.

  In personal finance, a person’s earnings, spending, savings, and investment are taught. Every person’s way of earning, spending, saving, and investing is different. Some people are on a life insurance policy, while some people say that depositing their money in the post office or any other financial institution is called savings. Personal finance is a very big subject, which can be understood and explained by taking personal coaching.

 The way to earn money means from how many sources money comes to you and at how many places the money is spent. This is the main income and expenditure involved in personal finance.




Income

  • salary
  • House Rent
  • Agriculture
  • Interest
  • Other

Expenses

  • Bill Payments
  • Shopping
  • Monthly Expenses
  • Personal Loan
  • Education (Child)

Investment

  • Home Loan
  • Stock Market
  • Real Estate
  • Mutual fund

Insurance

  • Life Insurance
  • Term Insurance
  • Health Insurance

Miscellaneous

  • Holiday Trip
  • Retirement

  The thing to think here is that earning is happening in one or two ways. But, the expenditure is being done in more than two ways. In such a situation, it is natural to have an earthquake in financial planning. But, there are some ways by which this tsunami can be avoided. Most people are only two or three months away from bankruptcy. You can attend our seminars for financial education. Which is also given offline on YouTube and many other places.




Personal Finance Education:

  Finance is an ocean and personal finance is a part of that ocean. Just taking out a bucket of water from the sea does not make any difference to the sea. Similarly, a part of the ocean is also an ocean in itself. Personal finance is a very big subject and all the income and expenses coming under personal finance can be understood better by dividing them into some categories. As above also it has been written in different parts.

Budget All types of income and expenditure are included in the budget. How much is the definition of savings or the amount of savings or profit? Do tell me about it in the comments.

Insurance Some people believe that an insurance policy is a way of saving. but it’s not like that. In the true sense, an insurance policy is not a way of saving. It depends on the person. Who has financial education? Accordingly, mutual funds are also not on the list of investments.




Saving and Investment ​​Saving and investing are two different things. There is a difference between seeing the Taj from near the Gate Way of India and seeing the Gate Way of India from the Taj Hotel room. Savings and investments are also similar.

TaxThose who have sufficient financial education save tax very easily. they are aware. How to do tax planning and how to get benefits from it. But, those who have enough financial information donate a major part of their earnings as tax.  

Financial PlanningThe time and amount of all expenses are written in financial planning. Such as children’s education, marriage, insurance, house rent or home loan EMI, car EMI, and retirement, apart from this, some expenses can also be included.

what is personal finance?

  Everyone’s idea about money is different. If someone has money, he buys land and property. But some people fulfill some other hobby by selling land. Money is a personal matter, the way each person earns and spends money is very different. Along with this, everyone’s capacity is also different. One has a lot of money but still lives like a beggar. Some have normal money but live better than that. That’s why every person can make money according to his ability and this is the reason why money is a personal subject, every person is his or her financial advisor.

The education system has been kept in three parts.

  • academic education
  • professional education
  • financial education

  





 Academic and professional education is being given to some extent. But, even in the biggest management institute in the country, the matter of financial education is not told. There is a strange noise here. Why do you study if you get a good job? Her work is being done only on the formula to prepare servants. Some people may find my words bad but my dear friends this is true.

   Kids Play School is said to be the topper in the class and school. Don’t ask what will happen if the child fails. It has always been my wish to get only good marks and a degree from a reputed college. After this what is the top placement of the college? The previous placement record is checked before taking admitted to the college.

We are all different. Our behavior, time, level of thinking, understanding, and mental state are different. Along with this, when the placement happened last year, the government, company, and time were also different. When so many changes have happened, then it is wrong to take admission this year on the expectation of that placement. Any student who has been placed on the maximum package, his understanding of thinking will also be different, who knows how much more work his IQ level will be than ours.

 



 

importance of money:

    Today we are living in the modern era. Along with modernization, the economy is also developing here. If only modernization had been talked about, it would have been a very good thing. But, there is more talk of modernization and economization here. I don’t understand the need to tell how important money is to live in this era of the economy. You probably know way better than me.

Money is significant for us to live. And when the earnings are ours, then we also have the right to spend it. But it is necessary to save it for the future. So that you can retire from your work on time. A person’s earnings, spending, saving, and investing are called “Money Control (Cashflow control)”.

 

 Those who understand money well in time, manage money well, and in no time become the owner of a lot of money. That is why we should know about personal finance. One who manages money well makes a better investment, gets a nice house, and car, and fulfills many of his dreams.





Most of us have a below-average money-savvy job and always go through financial crunch even though we have very good earning options. Often taking some loan before the last date of the month also goes on. Which has to be repaid as soon as the salary is received and again the cycle of the loan goes on. And in the end, one has to do the work of pacifying oneself with a dialogue. Earned a lot of money but could not save anything.

Every possible effort has been made to explain Personal Finance, if you still have any questions related to what is Personal Finance and how to do it, then you can ask in the comment section. It has always been our endeavor to provide knowledge-enhancing information to you.

 

“DISCLAIMER: This article is only for educational and knowledge purposes Before taking any decision plz once consult with your financial advisor or do your own research. The website would not be responsible for any financial gain as well as for losses. I am not SEBI registered.

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