Make Your Future Brighter By Having the Knowledge of Personal Finance Our lives is really unpredictable and uncertain since we are living in a very complicated world, on the other hand I do believe that our fate definitely lies within our own hands and it all depends on our decisions and determinations in making and turning our future and our family’s future into a brighter one and we can only do that by encouraging ourselves to engage in certain things that we could benefit in the future. Nowadays, more and more opportunities and favorable circumstances can be obtained by the people in all parts of the world, which could supply them the advantages and the benefits that they deserved to have throughout the hardships and trials they have surpassed in their whole lives, but achieving those things are very difficult and the people should have the right skills and knowledge in order to achieve such benefits and advantages. The facts about finance is that it encompasses various elements which is involved with money or any other valuables with monetary values, it includes investments, credits, banking, management of money, study and creation of money, financial instruments, and financial systems which includes all assets and liabilities of an individual and business companies, and finance is specifically categorized into three kinds, namely the personal finance, corporate finance and public finance. Being knowledgeable about personal finance can be very helpful and essential to the people who wants to have a brighter future, and one of its basic function is to help and assist the individuals in using and making their extra money from their salaries and wages into a beneficial elements which they could gain and used in times of needs and emergencies in the future. Personal finance teaches the person the proper way of managing their money, by spending less and gaining a lot more from it, and that can basically be done by saving, budgeting and spending only the right amount for your and your family’s important basic needs in life, such as water, food and shelter. Financial planning is the key component of the scope of personal finance and the planning process for this is classified into five steps, the first step is to assess your financial statements which includes the income statements and balance sheets, the second step is to create and make various goals which could encourage and motivate you during the process, the third step is to create your plans including the details on how you can carry out and achieved the goals you made, the fourth step is to execute and carry out the financial plan and the goals you made and the last step is to reassess, monitor and adjust your financial plans and goals if required. Some of the common goals and financial planning includes social security benefits, investments like mutual funds, stock market and bonds, income tax management, educational plans, banking products like credit cards, savings account, checking and consumer loans, insurances such as car insurance, health insurance, life insurance and disability insurance, and retirement plans.
Originally posted 2016-10-03 16:21:42.