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Personal Finance

In: Business and Management

Submitted By lillyfermas
Words 2631
Pages 11
Personal finance
Final paper

In my paper I will summarize everything I learned in this course about personal finance, talk about the steps to a healthy financial life and discuss the basics of personal finance.
What is personal finance?
Personal finance is the study of personal and family resources considered important in achieving financial success. It involves how people spend, save, protect, and invest their financial resources. It includes making financial decisions, developing and achieving financial goals, financial planning, budgeting, tax management, money management plan , use of credit cards, borrowing, saving plans, major expenditures, risk management, managing debts, investments, retirement planning, and estate planning.
Personal financial planning is the process of managing your money to achieve personal economic satisfaction.
Why is financial planning important?
A good financial plan can enhance the quality of your life, the planning process allows you to control your financial situation; Increased effectiveness in obtaining, using, and protecting your financial resources throughout your life, Increased control of your financial affairs by avoiding excessive debt, bankruptcy, and dependence on others, Improved personal relationships resulting from well-planned and effectively communicated financial decisions. A sense of freedom from financial worries obtained by looking to the future, anticipating expenses, and achieving personal economic goals.
Financial goals
Financial goals are rarely achieved without sacrificing current consumption. By cutting down the bills, saving, and investing your money.
Most people need to have some form of financial planning to achieve their financial objectives. Financial planning should reflect an individual's or family's values and life-cycle circumstances and include appropriate objectives in three broad...

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