Personal Finance is the discipline of finance that helps to maintain the financial schemes of an individual or a family. It is the only branch of finance that helps to monitor the activities of a family that is related to inflow and outflow of funds. Basically, the thing is that in this an individual uses the techniques of corporate finance in order to monitor his expenses. There are a number of reasons due to which an individual or a family uses this technique. Some of the most important reasons are as follows:
- Present Planning: There are a number of things that need a proper planning. We should know about the best technique that we can use in order to make a proper planning. Personal finance is the best tool that is available with an individual with whom he can manage his expenditure, savings and all the other money related matters.
- Future Planning: It is again a very important topic that I am going to discuss here. In the present time, there are a number of individuals who often keep thinking about the future planning. In my opinion, it is one of the most concerned issues of today’s time. The actual scene is that even after savings funds, many people are not able to plan their life after retirement. The main reason behind this is lack of proper planning qualities. The advice that I can give to these people is that they should spend some valuable time in understanding the concepts of personal finance. After this only they will be able to make a fair judgment.
So, the main point that I want to emphasize is that present planning and future planning are the two major areas of application of personal finance. Apart from the above mentioned areas, the other important areas of application corresponds estate planning, tax planning and investment planning.
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