Premium Essay

All About Personal Finance

In: Business and Management

Submitted By LeeRhobel
Words 532
Pages 3
All about Personal Finance
“Money is hard to earn and easy to lose. Guard yours with care.” a quote from Brian Tracy which tells about money just passing by in our hands because of wrong management. Another quote is from Natasha Munson which tells about “Money, like emotions is something you must control to keep your life on the right track.” This means we must know ways to maintain or control our money so that our life will be financially stable. That’s why I will tell you all about Personal Finance to help you manage your money.
Personal Finance is about learning to manage income and wealth to satisfy desires in life or to create more income and more wealth. It is about creating productive assets and about protecting existing and expected value in those assets. Personal Finance is very significant to our lives and some of the reasons are; first, it gives us self confidence, because we handle our financial problems under our control and we make more peaceful and better decisions. Second, saving for emergencies, you will not fear of crisis or surprise events which require a lot of money because you are already prepared financially. Third, saving for retirement, this is helpful for future purposes.
Personal Finance includes about wealth, but what is wealth? Wealth is the abundance of valuable resources or material possessions of economic value like money, real estate and personal property. An individual, who is considered wealthy, is someone who has accumulated substantial wealth relative to others in their society or reference group.
In order to be successful in personal finance there are certain keys in achieving it. First is frugality, it refers to living below our means so that savings may be affected. In being frugal, we have to save, save and save. It requires control over our expenditures. Second is vision, it refers to foresight or the ability to look far…...

Similar Documents

Premium Essay

What Is Finance for Me

...Finance is probably one of the most significant part of our life, it is involved in all kind of activities. No matter where you are and what you are doing, we all face difficulties in making decisions in how and when to use money. Talking about finance, most of people would link it with monetary terms, material possessions and investment to increase personal assets. For me through finance is more about budgeting. However, I consider it not only as a money management tool to balance my expenses and follow my business’s financial performances but also as an instrument that gives me an opportunity to expand my comfort zone. There are a few vital aspects of finances in my life that I am going to explore in this essay, including personal finance and public finance. The type of finance that plays a big role in everyone’s daily life is a personal finance. Individual can be compared to an organization that faces with financing decisions and investment everyday. In order to purchase or invest, the person has to do calculations and projections to make the best decision. Many people have to compare diverse options like to take on debt, mortgages or through they savings before making investment. For example, to have a chance to attend SCAD I had to work tirelessly for a long period of time and maintain my personal budget and put in savings my earnings. However, I consider SCAD is as much about gaining priceless knowledge to improve my capacity, to learn and interact more effectively......

Words: 655 - Pages: 3

Free Essay

Impact of Financial Education on High School

...The Impact of Financial Education in High School and College On Financial Literacy and Subsequent Financial Decision Making by Lewis Mandell Kermit O. Hanson Visiting Professor of Finance and Business Economics Foster School of Business, University of Washington Senior Fellow, Initiative on Financial Security, Aspen Institute Presented at the American Economic Association Meetings San Francisco, CA January 4, 2009 The Impact of Financial Education in High School and College On Financial Literacy and Subsequent Financial Decision Making Abstract: Many consumers appear to lack the financial literacy needed to make financial decisions in their self-interest. A growing number of analysts and politicians are blaming the intersection of low levels of financial literacy with complex, financially-engineered products for the current economic meltdown and have proposed a number of solutions to this problem. These solutions range from mandatory education in personal finance to required simplification of financial products and greatly increased regulation. This paper examines evidence on the effectiveness of personal finance education on both financial literacy and financial behavior. If the problem can be solved through education, it is likely to reduce the perceived need to limit choice in the marketplace for retail financial products. If education is shown to be ineffective, the future of financial product innovation and financial engineering may be greatly limited.......

Words: 10007 - Pages: 41

Free Essay

Financial Literacy Through Common Core Integration

...fend off further economic mishaps, school districts have been compelled to teach financial literacy. While there is broad agreement on the importance of teaching financial education and capability to children and youth, there is little agreement about what constitutes effective financial education and capability initiatives. Without regulation, curriculum is taught differently in every school and can be outdated and irrelevant when applied to a rapidly changing global economy. Although the concept of Common Core State Standards (CCSS) in education has met with debate, most states have adopted the standards for mathematics and language arts, and require students to think mathematically about real-world issues. Therefore, including financial education within existing Common Core curriculum – rather than a standalone class or graduation requirement – is an appropriate solution to financial literacy concerns in American education. A blending of courses addresses an immediate need, provides readily implementable standardization and establishes funding and research for financial education, using an existing program as a catalyst for change. Resolves an acute need “Financial literacy” was first championed by the Jump$tart Coalition for Personal Financial Literacy in its inaugural 1997 study “Jump$tart Survey of Financial Literacy among High School Students.” In this study, Jump$tart defined “financial literacy” as “the ability to use knowledge and skills to manage one's......

Words: 2306 - Pages: 10

Premium Essay

Consumer Durables

...January 2008 JEL codes: D14, E21, E51, G23, N27 Keywords: Consumer Credit, Finance, Household Expenditure, History, Australia Consumer credit in Australia during the 20th century Pierre van der Eng1 School of Management, Marketing and International Business, Australian National University, Canberra, Australia Abstract This article surveys the growth of consumer credit in Australia during the 20th century, particularly after World War II. Until the 1970s, the regulation of Australia’s financial market caused formal consumer credit to be provided mainly by finance companies under hire-purchase contracts, largely for the purchase of cars and household durables. Deregulation of the financial market since the 1960s allowed banks to gain a dominant share in the market for personal loans. Quantification of long-term trends is difficult, but broad estimates suggest sustained growth in per capita indebtedness during 19452007. JEL classifications: D14, E21, E51, G23, N27 Key words: consumer credit, finance, household expenditure, history, Australia Introduction Living standards improved considerably in Australia during the 20th century. Households were increasingly able to overcome liquidity constraints and purchase an ever greater number and range of consumer durables, including furniture, refrigerators, washing machines, radios, televisions and cars. These were often items for which they lacked finance in terms of current income and/or accumulated savings. Still,......

Words: 13779 - Pages: 56

Premium Essay

Pestle Analysis

...first requires you to think about the best method to go about it. There are many factors to take into account, though some may vary according to an entrepreneur's personal situation. Poor management is the most frequent cause of small-business failure, according to the Small Business Notes website, but it is closely followed by insufficient financing. Other People Are Reading * The Disadvantages of External Equity * Financing Methods for Capital Purchases 1. Funding Availability * The first thing to do when choosing a method of financing your business is to determine what your range of options are. Small Business Notes lists the most common sources of finding money to start a business: personal savings (72 percent), banks (45 percent), friends/relatives (28 percent), individual investors (10 percent), government-guaranteed loans (7 percent) and venture capital firms (1 percent). Most people will not be able to rely on a single source, since banks expect the business owner to put some of his own money at risk in the venture. Spend some time thinking about what sources you can access. Personal Savings * Choosing to risk personal savings on a business venture requires serious thought, especially if the money is part of your retirement plan or you have others to consider, like a spouse or children. Don't pretend there isn't a chance you could lose it all. A young, single entrepreneur might be willing to risk more personal savings than a middle-aged......

Words: 1297 - Pages: 6

Premium Essay

Finance Analysis Paper

...Finance Analysis Paper Yahoo! Finance Yahoo! Finance is a service from Yahoo that provides financial information in various ways including stock quotes, corporate press releases, financial reports, stock exchange rates as well as popular message boards for discussing a company's forecasts and stock valuations. It holds the title for the top financial news and research website in the United States, with an astounding 23 million visitors in February 2010. It also offers tools for personal finance management. Yahoo! Finance includes similar portals identified to diverse large countries in South America, Europe, and Asia. Yahoo! is one remarkable website that is not only a favorable site for people linked with finance but is fairly easy to navigate. Anyone from experts who are tech-savvy to beginners who are just exploring the world of technology will able to find the most up to date and beneficial information regarding finance and investment with this website. There are many practical tools such as currency calculators, and a finance glossy that will help you uncover the world of finance and even personal investments you may be interested in. This site offers information in personal finance, latest news and of course investing. These sections are then sub-divided into additional categories that will help fulfill your curiosity in finance. Beginners especially will be excited to learn and understand the concepts of the finance market more properly. A few helpful sections......

Words: 2323 - Pages: 10

Free Essay

Foundations of Personal

... |Foundations of Personal Finance | Copyright © 2011, 2010, 2009 by University of Phoenix. All rights reserved. Course Description This course provides an overview of the elements necessary for effective personal financial planning and the opportunity to apply the techniques and strategies essential to this understanding. Primary areas of study include creating and managing a personal budget, understanding and paying taxes, working with financial institutions, wise use of credit cards and consumer loans, financing automobiles and homes, and the use of insurance for protecting one’s family and property. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Bajtelsmit, V. L. & Rastelli, L. G. (2008). Personal finance: Managing your money and building wealth. Hoboken, NJ: Wiley. All electronic materials are available...

Words: 2008 - Pages: 9

Premium Essay

Personal Finance

...Unit10- Personal Finances Marc Wilks Kaplan University MM 212 Professor Heather Bullard October 3, 2015 Having an understanding of basic financial principles is essential for anyone who wants to exercise control over their personal income. Without it, how can anyone plan how to pay for next month’s bills, much less plan for retirement? I learned that a basic knowledge of financial basics is essential if I was to have any chance of being able to make the most of my personal income (LaPonsie, How to Stop Living the Paycheck to Paycheck Lifestyle August 6, 2015). I had my first exposure to basic personal finance the last half of my senior year of high school. I learned about how balance a checkbook, income versus debt, and a little about interest. I did not start to actually use this knowledge until I was out of school and moved out of my parent’s home. When I moved into my first apartment, I was forced to create a budget. I needed to get a good idea of how much money I had coming in and the best way to make that money cover my expenses. When I was married to my first wife, I learned how to operate within a two income budget. This came with its own set of challenges as we had double the expenses to cover. My wife, well ex-wife handled most of the finances but I did manage to learn a thing or two. This experience came in handy when we got divorced and I was solely responsible for my financial matters. I think that......

Words: 616 - Pages: 3

Premium Essay

Principles of Managerial Finance

... Principles of Managerial Finance The Prentice Hall Series in Finance Adelman/Marks Entrepreneurial Finance Andersen Global Derivatives: A Strategic Risk Management Perspective Bekaert/Hodrick International Financial Management Berk/DeMarzo Corporate Finance* Berk/DeMarzo Corporate Finance: The Core* Berk/DeMarzo/Harford Fundamentals of Corporate Finance* Boakes Reading and Understanding the Financial Times Brooks Financial Management: Core Concepts* Copeland/Weston/Shastri Financial Theory and Corporate Policy Dorfman/Cather Introduction to Risk Management and Insurance Eiteman/Stonehill/Moffett Multinational Business Finance Fabozzi Bond Markets: Analysis and Strategies Fabozzi/Modigliani Capital Markets: Institutions and Instruments Fabozzi/Modigliani/Jones/Ferri Foundations of Financial Markets and Institutions Finkler Financial Management for Public, Health, and Not-for-Profit Organizations Frasca Personal Finance Gitman/Joehnk/Smart Fundamentals of Investing* Gitman/Zutter Principles of Managerial Finance* * denotes Gitman/Zutter Principles of Managerial Finance— Brief Edition* Goldsmith Consumer Economics: Issues and Behaviors Haugen The Inefficient Stock Market: What Pays Off and Why Haugen The New Finance: Overreaction, Complexity, and Uniqueness Holden Excel Modeling and Estimation in Corporate Finance Holden Excel Modeling and Estimation in Investments Hughes/MacDonald International......

Words: 4858 - Pages: 20

Free Essay

Corporate Spys

...Behavioral Finance By Albert Phung http://www.investopedia.com/university/behavioral_finance/default.asp Thank-you very much for downloading the printable version of this tutorial. As always, we welcome any feedback or suggestions. http://www.investopedia.com/contact.aspx Table of Contents 1) Behavioral Finance: Introduction 2) Behavioral Finance: Background 3) Behavioral Finance: Anomalies 4) Behavioral Finance: Key Concepts - Anchoring 5) Behavioral Finance: Key Concepts - Mental Accounting 6) Behavioral Finance: Key Concepts - Confirmation and Hindsight Bias 7) Behavioral Finance: Key Concepts - Gambler's Fallacy 8) Behavioral Finance: Key Concepts - Herd Behavior 9) Behavioral Finance: Key Concepts - Overconfidence 10) Behavioral Finance: Key Concepts - Overreactions and Availability Bias 11) Behavioral Finance: Key Concepts - Prospect Theory 12) Behavioral Finance: Conclusion Introduction According to conventional financial theory, the world and its participants are, for the most part, rational "wealth maximizers". However, there are many instances where emotion and psychology influence our decisions, causing us to behave in unpredictable or irrational ways. Behavioral finance is a relatively new field that seeks to combine behavioral and cognitive psychological theory with conventional economics and finance to provide explanations for why people make irrational financial decisions. By the end of this tutorial, we hope that you'll have a better understanding of......

Words: 8866 - Pages: 36

Premium Essay

Personal Finance

...important? Financial literacy is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. More specifically, it refers to the set of skills and knowledge that allow an individual to make informed and effective decisions through their understanding of finances. Financial literacy involves a number of different areas of understanding. Learning about money and how it works is an important aspect, as well as understanding products like credit, loans, and investments. Competency in managing money appears to be a skill that doesn’t come naturally to everyone. Unless a person is exposed to the practice of money management, he/she is less likely to understand how it works and it long-term benefits. Without a financial education, it is easy to develop poor spending and financial habits resulting in significant negative consequences such as a poor credit rating, denial of credit, rejection for a checking account and bankruptcy, to name a few. Early financial literacy is the best way to prevent such consequences. In essence, personal financial literacy is much more than managing and investing money. It also includes making all the pieces of your financial life fit together. Achieving Financial Success you must understand and determine where your money goes. Here’s how you can start:  Analyzing cash flows  Taking advantage of opportunity cost.  Taking control of your spending. Continued on page 2 Reviewing your......

Words: 3492 - Pages: 14

Premium Essay

Principle of Finance

... Principles of Managerial Finance The Prentice Hall Series in Finance Adelman/Marks Entrepreneurial Finance Andersen Global Derivatives: A Strategic Risk Management Perspective Bekaert/Hodrick International Financial Management Berk/DeMarzo Corporate Finance* Berk/DeMarzo Corporate Finance: The Core* Berk/DeMarzo/Harford Fundamentals of Corporate Finance* Boakes Reading and Understanding the Financial Times Brooks Financial Management: Core Concepts* Copeland/Weston/Shastri Financial Theory and Corporate Policy Dorfman/Cather Introduction to Risk Management and Insurance Eiteman/Stonehill/Moffett Multinational Business Finance Fabozzi Bond Markets: Analysis and Strategies Fabozzi/Modigliani Capital Markets: Institutions and Instruments Fabozzi/Modigliani/Jones/Ferri Foundations of Financial Markets and Institutions Finkler Financial Management for Public, Health, and Not-for-Profit Organizations Frasca Personal Finance Gitman/Joehnk/Smart Fundamentals of Investing* Gitman/Zutter Principles of Managerial Finance* * denotes Gitman/Zutter Principles of Managerial Finance— Brief Edition* Goldsmith Consumer Economics: Issues and Behaviors Haugen The Inefficient Stock Market: What Pays Off and Why Haugen The New Finance: Overreaction, Complexity, and Uniqueness Holden Excel Modeling and Estimation in Corporate Finance Holden Excel Modeling and Estimation in Investments Hughes/MacDonald International......

Words: 4858 - Pages: 20

Premium Essay

Bus3062

...Define the terms finance and financial management, and identify the major sub-areas of finance. Finance is the way in which money is used and handled; especially, the way in which large amounts of money are used and handled by governments and companies (Merriam-Webster, 2014). Financial Management is the planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization (Businessdictionary, 2014). The major sub-areas of finance are: investments—involves methods and techniques for making decisions about what kinds of securities to own; financial management—deals with a firm’s decisions in acquiring and using the cash that is received from investors or from retained earnings; financial institutions and markets—the two entities work in different ways to facilitate capital flows between investors and companies; International finance—involves investors, companies, business operations, and capital markets that may be located in different companies(Cornett, Adair, & Nofsinger, 2014,). 2. What are the three basic forms of business ownership? What are the advantages and disadvantages to each" (Cornett, Adair, & Nofsinger, 2014, p. 21)? Partnership is an organizational form that has multiple individual owners. Each partner can own a different percentage of the firm. Advantages: Business profits are split among the partners according to a prearranged agreement. Received profits are added to each partner’s personal income and......

Words: 690 - Pages: 3

Premium Essay

Personnal Financial

...baj01275_c01_001-021.qxd 2/09/07 02:23am Page 1 1 PERSONAL FINANCIAL PLANNING IN ACTION Developing a Personal Financial Plan Starting Point Go to www.wiley.com/college/bajtelsmit to assess your knowledge of developing a personal financial plan. Determine where you need to concentrate your effort. What You’ll Learn in This Chapter ▲ Personal financial planning and decision-making strategies ▲ Factors that influence financial planning ▲ The stages of successful financial planning After Studying This Chapter, You’ll Be Able To ▲ ▲ ▲ ▲ List the five steps in the personal financial planning process Examine the factors that influence personal financial planning decisions Begin to construct a comprehensive financial plan Consider opportunity costs and marginal effects in making personal finance decisions baj01275_c01_001-021.qxd 2/09/07 02:23am Page 2 2 PERSONAL FINANCIAL PLANNING IN ACTION INTRODUCTION Knowing how to manage your finances can help you be more successful in life. In this chapter, we first look at the five-step financial planning process and then the factors that influence it, and we discuss the elements of a comprehensive financial plan. Finally, we explore strategies for making effective financial decisions. With this framework, you will be able to gain the tools for successful personal financial management. 1.1 The Personal Financial Planning Process In your life, you’ve probably already faced some financial......

Words: 7519 - Pages: 31

Free Essay

How Can Communities and Governments Encourage Recycling Efforts in the United States?

...------------------------------------------------- Course Syllabus FP/101 Foundations of Personal Finance Course Start Date: 08/13/12 Course End Date: 10/14/12                   Please print a copy of this syllabus for handy reference. Whenever there is a question about what assignments are due, please remember this syllabus is considered the ruling document. Copyright Copyright ©2010, 2009 by University of Phoenix. All rights reserved. University of Phoenix© is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft©, Windows©, and Windows NT© are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix© editorial standards and practices. Facilitator Information                                                                                                       Carol Ward, MBA, DBA cward123@email.phoenix.edu (University of Phoenix) ciward123@yahoo.com (Personal) (901) 270-9434 (Central Standard Time) Facilitator Availability Dr. Ward is available from 9 a.m.-9 p.m. Central Time on most days, but I attempt to reserve Sunday for my family. During the week, I am online most of the time during that 9 a.m.-9 p.m.......

Words: 3617 - Pages: 15