“ The person who never makes mistakes is that the man who never does anything new ”

-Roosevelt

Personal finance may be a term that covers managing your money also as saving and investing. It encompasses budgeting, banking, insurance, mortgages, investments, retirement planning, and tax and estate planning.

One can consider personal finance comprises the whole industry which provides financial services to grow people’s wealth.

Why do we need personal finance?

It is vital to understand personal finance because it’s one of the important parts of our life. Suppose an individual is earning tons of cash but he’s not conscious of personal finance then within a really short period he’s gonna waste his money or just he is going to be directionless.

Nowadays personal finance subject is there in colleges. instead of I suggest that everybody should realize personal finance. Financial knowledge helps people to differentiate between good and bad financial knowledge.

Areas of personal Finance

1. Income:

An individual can have tons of income sources like his salary, bonuses from the corporate during which he’s working and shares, Dividends from stocks. But it all depends on the person what he’s gonna do with that money. Because that’s the foremost important decision to require.

It’s all that one decide what proportion we would like to spend and where we would like to spend. It’s the primary step toward’s personal finance.

2. Spending:

When money is in our hands we humans spend on unwanted things. We people have such a lot of attraction to new things and need to realize everything by a shortcut and don’t want to figure for that. Spending features a lot of forms or ways like Rent, Taxes, Food, Travel, Trips, etc.

It depends on we people what proportion we would like to spend and the way much we would like to save lots of. we’ve to spend only up to a particular limit so that we will but our future.

3. Savings:

If we have the financial knowledge and that we are clear about we’ve to save lots of some money for the betterment of our future lifestyle. Savings are often cash reception, saving account during a bank, market, etc.

Saving money is one of the skills that everybody should have in them. It’s one of the main steps toward’s personal financing.

4. Investing:

Investing may be a major part of personal financing. After earning, spending, and saving some amount of cash subsequent question is where we’ve to spend that cash. a number of the simplest sectors for investing money is in stocks, bonds, Mutual Funds, Real estate, Commodities, Buying securities.

Investment within the right direction can offer you an honest amount of ROI during a very short period.

We have to mainly specialize in creating more assets part than liabilities in our life. As those people whose assets part is on the massive side are always on the wealthier side as compared to the opposite people.

We have to mainly specialize in creating more assets part than liabilities in our life. As those people whose assets part is on the massive side are always on the wealthier side as compared to the opposite people.

“Money is sweet for nothing unless you recognize the worth of it by experience.“


P T Barnum

Last Thoughts :

For personal finance, we should always need to confine mind a number of the subsequent points :

  • Budgeting is our friend.
  • Avoiding Mastercard balance.
  • Managing net worth.
  • Start saving for retirement early.
  • Buy life insurances for long terms.
  • Teach your children about finance from day one and become an honest example for them first.
  • Don’t worry about what people think