Personal finance refers to the practice of budgeting to ensure enough funds are available to meet basic needs, while ensuring there is only a reasonable level of risk to lose said capital. Personal finance may involve paying for education, financing durable goods such as real estate and cars, buying insurance, investing, and saving for retirement. Personal finance may also involve paying for a loan or other debt obligations. The main areas of personal finance are considered to be income, spending, saving, investing, and protection. The following steps, as outlined by the Financial Planning Standards Board, suggest that an individual will understand a potentially secure personal finance plan after: Purchasing insurance to ensure protection against unforeseen personal events; Understanding the effects of tax policies, subsidies, or penalties on the management of personal finances; Understanding the effects of credit on individual financial standing; Developing a savings plan or financing for large purchases (auto, education, home); Planning a secure financial future in an environment of economic instability; Pursuing a checking or a savings account; Preparing for retirement or other long term expenses.
Personal finance refers to the practice of budgeting to ensure enough funds are available to meet basic needs, while ensuring there is only a reasonable level of risk to lose said capital. Personal finance may involve paying for education, financing durable goods such as real estate and cars, buying insurance, investing, and saving for .retirement. Personal finance may also involve paying for a loan or other debt obligations The main areas of personal finance are considered to be income, spending, saving, investing, and protection. The following steps, as outlined by the Financial Planning Standards Board, suggest that an individual will understand a potentially secure personal finance plan after: Purchasing insurance to ensure protection against unforeseen personal events; Understanding the effects of tax policies, subsidies, or penalties on the management of personal finances; Understanding the effects of credit on individual financial standing; Developing a savings plan or financing for large purchases (auto, education, home); Planning a secure financial future in an environment of economic instability; Pursuing a checking or a savings account; Preparing for retirement or other long term expenses.