Very Nice experience with OZ Assignments, I achieve good ...
Personal finance is the management of the finances of an individual or family unit. This is one of the three main branches of finances along with public finance and corporate finance respectively. The objective of this domain of finance is the planning, management and conservation of monetary resources of a given financial economic unit in order to achieve short term and long term financial goals. This involves managing the inflow and outflow of monetary resources taking into consideration factors like financial risks, future life events and market fluctuations. In this capacity, personal finance engages with investment, insurance and banking issues like savings accounts, credit cards, loans, stocks, bonds, mutual funds. Insurance plans for life, health, house, vehicles, trust funds etc. Another large part of personal finance is the management of financial resources to ensure adequate financial security and stability at the time of retirement, social security and management and payment of income tax.
The entire process of personal finance management comprises of five cyclic stages. These are:-
This is the first step in personal finance management and it involves the assessment of the present financial situation of an individual. This assessment is usually done with the help of financial statements like balance sheets, income statements etc.
- Establishing Objectives
After assessing the financial situation of an individual the financial planner must set the short term and long term financial goals that the given person wishes to achieve. All further financial planning and management will be done on the basis of these long term and short term goals. A number of factor would come into play during this phase namely – tax planning, investment and wealth accumulation, retirement planning, estate planning etc.
- Plan Formation
After all estimation and assessment is completed, the financial plan would be set by the planner. This would contain details pertaining to the goals and how to achieve them.
Implementation of a financial plan requires meticulous detailing of the plan and application to the present financial scenario. It is in this stage that many people take the help of finance professionals.
- Monitoring and reassessment
With the passage of time, the periodic assessment of the effectiveness of the plan would have to be done to ensure it is in line with the established goals.
For any personal finance assignment help contact us
|Personal Finance Assignment Help Articles|