personal finance

Jun 18th, 2015
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Personal finance may involve paying for education, financing durable goods such as real estate and cars, buying insurance, e.g. health and property insurance, investing and saving for retirement.Personal finance may also involve paying for a loan, or debt obligations.

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Questions in personal finance revolve aroundProtection against unforeseen personal events, as well as events in the wider economyTransference of family across generations (bequests and inheritance)Effects of tax policies (tax subsidies and/or penalties) on management of personal financesEffects of credit on individual financial standingPlanning a secure financial future in an environment of economic instabilityPersonal finance may involve paying for education, financingdurable goodssuch asreal estateand cars, buyinginsurance, e.g. health and property insurance, investing and saving forretirement.Personal finance may also involve paying for a loan, or debt obligations. The six key areas of personal financial planning, as suggested by the Financial Planning Standards Board, are:[1]1. Financial position: is concerned with understanding the personal resources available by examining net worth and household cash flow. Net worth is a person's balance sheet, calculated by adding up all assets under that person's control, minus all liabilities of the household, at one point in time. Household cash flow totals up all the expected sources of income within a year, minus all expected expenses within the same year. From this analysis, the financial planner can determine to what degree and in what time the personal goals can be accomplished.2. Adequate protection: the analysis of how to protect a household from unforeseen risks. These risks can be divided into liability, prop

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