What Is Personal Finance.

What Is Personal Finance.

Hello friends Today I have explain about our new topic What Is Personal Finance.
So let's start here,

"Personal Finance", contains the story of the wealth of a person who teaches it. How to handle money. How do you control money?

Available money means how to make as much money as possible from the wealth that is now.

We all earn money and some of us are such people who despite earning work, they make more wealth than the person who earns more. It is clear from this  according to the information of earning money, spending and saving, investment, we can have property. This information is given in personal finance.

Also Read :  What is Share Market.

                                

What is Personal Finance

How to manage money for yourself.

Personal finance can be understood by many more examples. Talking in very easy words, if 100 people were given 1000 rupees, the way to spend and save everyone would be different. This is personal finance.

"What is Personal finance is an important subject for increasing the understanding of money. In this, it is talked about education of saving, investment, along with all the earnings and expenses of household, family, financial. Earning money is a very easy job. But, saving it and investing somewhere is very difficult task. If savings and investment were easy, then everyone would have enough assets.

What is included in personal finance?

Many of us know this. What can be included in personal finance?

In personal finance, education of a person's earnings, expenses, savings and investment is important. The way everyone spends earning, saving and investing is different. Some people are on the life insurance policy, while some people say that depositing their money in the post office or any other financial institution is savings. Personal finance is a very big subject, which can be taken on personal coaching to understand and explain.

The way to earn money means how much source money comes to you and how many places spend money. This is the main earning and expenditure in personal finance.

Income

-salary

-House rent

-Agriculture

-Interest

-Other

Expenses

-Bill payments

-Shopping

-Monthly Expenses

-Personal Loan

-Education (Child)

Investment

-Home Loan

-Mutual Fund

-Stock market

-Real estate

Insurance

-Life Insurance

-Term Insurance

-Health Insurance

-Miscellaneous

-Holiday trip

-Retirement

The thing to think about here is that the earning is going through one or two ways. But, the expenditure is happening more than two ways. In such a situation, an earthquake is natural in financial planning. But, there are some ways that this tsunami can be avoided. Most people are two or three months away from bankruptcy.

Also Read : What is Mutual Fund.

 

What is Personal Finance

Education of personal finance

Finance is a sea and personal finance is a part of that sea. For example, taking a bucket of water out of the sea does not affect the sea. Similarly, a part of the sea is also a sea in itself. Personal finance is a very big topic and by dividing all the income and expenditure under personal finance into some category, you can understand it better. As above, it has been written in different parts.

Budget - All types of income and expenditure have been included in the budget. Definition of Saving or How Much Will It Get to Save or Profit? Please tell us about it in the comments.

Insurance - Some people believe that insurance policy is a way of saving. but it's not like that. Insurance policy is not a way of saving in the true sense. It depends on the person. Who has financial education. According to him, even the mutual fund is not in the list of investments.

Saving and Investment - Saving and investing are both different. There is a difference between seeing the Taj near the Gateway of India and seeing the Gateway of India from the Taj Hotel room. Savings and investment are also similar.

Tax - Those who have adequate financial education save tax very easily. They are aware. How to plan tax and how it can benefit from it. But, those who have sufficient financial information donate a large part of the earnings as tax.

Financial Planning - The time and amount of all expenses is written in financial planning. Some expenses may be included such as children's studies, marriage, insurance, house rent or home loan EMI, car EMI, retirement.

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. However, financial education is not mentioned even in the largest management institute in the country. There is a strange horror here. Why do you study, you get a good job. The formula to prepare only servants is being worked out here. May be some people find my words bad but my dear friends this is true.

Children are said to be toppers from play school to class and school. If the child fails, don't ask what will happen? Always wish to get a degree from good marks and a well-known college. After this, what is the maximum placement of the college. The previous placement record is checked before taking admission in the college.

We are all different. Our behavior, time, thinking, understanding, mental state levels are different. With this, when the placement took place last year, the government, company and time were also different. When so much change has taken place, it is totally wrong to take admission this year on the expectation of that placement. The understanding of thinking of any student who has been placed on the maximum package will also be different, how much more will his IQ level be than us.

Importance of money

Today we are living in the modern era. Economization is also developing here with modernization. Talking about modernization was a very good thing. But, there is more talk of modernization and economicization here. I do not understand the need to tell how much money is necessary to live in this era of economicization. Maybe I know better than I do.

It is very important for us to earn money for living. And when we earn, then we also have the right to spend. But it is important to save it for the future. So that you can retire from your work on time. To earn, spend, and save, invest a person is called Money Control.

One, who comes to understand money in time, manages the money well and in no time he becomes the owner of a lot of money. That is why we should know about personal finance. Those who manage money well make a good investment, a good house, a car and fulfill their many dreams.