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Personal Finance
Personal finance involves using the basic principles of finance to manage one’s
money by keeping a record of income, budgeting, saving, investing and
managing financial risks for example. After the 2008 financial crisis, there was a
massive shift in focus from consumerism to saving and investing. According to
government data from November and December 2008, consumer expenditure fell
by 0.8 percent and 1.0 percent respectively - as personal income shrunk by 0.4
percent and 0.2 percent.
What is Personal Finance?
Personal finance covers:
Budgeting: Determining the percentage of personal income should be spent on
purchasing and consumables and how much should be saved. This takes into account
necessary expenses like children’s education.
Insurance coverage planning.
Saving and investing in financial markets, including forex, stocks, bonds and
commodities.
Minimizing tax obligations and filing tax returns.
Social security or government benefits and retirement goals.
Loans such as consumer loans and credit card loans.
How to Calculate Your Net Worth
An individual’s net worth indicates his/her financial standing. It's calculated by adding all
personal assets and subtracting all the liabilities from that.
Net Worth = (Sum of Assets) - (Total Liabilities)
Personal assets generally comprise of:
Cash
Savings account and other
Checking account
Any other bank account or money market accounts

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Any assets or investments owned such as stocks and shares, bonds, mutual
funds, ETFs, options, futures,currency, forex, commodities or alternative investments
Certificates of deposits (CDs)
Any property or real estate owned
Home inventory value, comprising of valuable home contents
Valuables like jewelry
Financial liabilities may include:
Mortgage
Car loan
Education loan
Personal loan
Home loan
Credit card loan
Managing Your Finances
Banks offer to make personal finance more convenient to manage:
Banks are the easiest source of obtaining and maintaining cash. People can
deposit their savings in banks and receive interest on the saved amount.
People can obtain short-term loans on an ad-hoc basis through credit cards.
However, the interest rate on credit cards is typically very high.
People can also obtain long-term loans from banks by pledging an asset as
collateral. When interest rates come down, is a popular activity
Home Loans: One can obtain loans to buy a home by keeping the property as
collateral.
Protect yourself and your loved ones by insuring against unforseen
circumstances.
Investing is an important way of supplementing the regular income stream. Investment
choices may range from safer options, like banks accounts and mutual funds, to more
risky ones, like the stock, real estate and commodities markets. It is also important to
contribute to the employer-sponsored retirement account.
Managing Expenses
Here are some simple steps to have greater control over your personal finance:
Start by preparing an annual budget.

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Personal Finance Personal finance?involves using the basic principles of finance to manage one's money by keeping a record of income, budgeting, saving, investing and managing financial risks for example. After the 2008 financial crisis, there was a massive shift in focus from consumerism to saving and investing. According to government data from November and December 2008, consumer expenditure fell by 0.8 percent and 1.0 percent respectively - as personal income shrunk by 0.4 percent and 0.2 percent. What is Personal Finance? Personal finance covers: Budgeting:?Determining the percentage of personal income should be spent on purchasing and consumables and how much should be saved. This takes into account necessary expenses like children's education. Insurance?coverage planning. Saving and investing?in financial markets, including forex, stocks, bonds and commodities. Minimizing tax?obligations and filing tax returns. Social security or?government benefits and retirement goals.? Loans?such as consumer loans and credit card loans. How to Calculate Your Net Worth An individual's net worth indicates his/her financial standing. It's calculated by adding all personal assets and subtracting all the liabilities from that. Net Worth = (Sum of Assets) - (Total Liabilities) Personal assets generally comprise of: Cash Savings account?and other Checking account Any other?bank account?or?money market accounts Any assets or investments owned such as?stocks and shares,?bonds,?mutual funds, ...
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