What’s do you mean by personal finance basics, Management of individuals or family income and expenditure, it includes all basics? In this article we are going to help you break down the persona finance basics for you so that you can start to improve your financial situation much faster!
1. Saving :- In that how much you earn and what are your savings is basic things of personal finance.
2. Planning of short term and long term need :- it is one of the important basics of personal finance cause in your mouth monthly earnings you have manage all short term and long term needs. For example. EMI of home loan or insurance it includes in short term and education of child’s or pension plan it’s includes in long term..
3. Goals :- In our of every one set a goal for ourselves or family. And for that we have to manage financial side, Cause it’s basic of goal.
4. Insurance and Tax :- insurance is one of the important basic cause insurance will protect yourself and your family also and you have business then it will secure your material also, in short I just want to say Insurance will balance your financial imbalance.
5. Financial Literacy :- financial literacy is essential parts or basic of personal finance financial literacy means mobilization of Financial knowledge. How to balance your earnings, On front of income and expenditure, Same like how to increase your income and opposite how to decrease your expenditure because management of expenditure is very important.
6 . decision making :- decision making is also important basic of personal finance cause most of people don’t take Financial decisions when want to buy any products or any other things they are unable to manage financial balance, when they want to buy one time more things, What to buy or what to not means they want every things rather it is essential or not But they can’t take correct decision. In economics there is also one research for personal finance. How to balance personal finance it’s called micro economics.
And due to lack of personal finance knowledge many colleges having courses for personal financial management.
7. Likes or Dislikes:- it’s also Important part of personal finance cause most of time we buy that things which is not essential but we liked it more and because of that we lost our financial management means we spend more money on unused parts so remaining important things we have to manage. but we already spend more money so now we don’t have anything. So u just wants to say, Only buy things which is essential.