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Personal Financial Management Robert Smith
Contents • What is Personal Finance • Personal Financial Planning Process • Focus Areas • Activities of Consumer • Conclusion
What is Personal Finance • Personal finance is the financial management of an individual or family. • This includes budgeting, investments, and retirement planning.
Personal Financial Planning Process This shows the financial planning process Assessment Goal Setting Creating a Plan Monitoring Execution
Focus Areas Some Personal Financial focus areas: • Financial Position: Understanding the availability of personal resources by examining the net worth. • Adequate Protection: The ways to protect the household from unseen risks. The risks are divided into liability, property, health and many more.
Contd.. • Tax Planning: Income tax is one of the largest expense in the household. The question arises when and the amount of taxes you pay . The government provides many incentives and credit, which will reduce the tax burden. • Investment: Planning to collect sufficient money for large purchases. It also includes planning for major life events.
Contd.. • Retirement Planning: It is the process of understanding that how much it costs to live afterretirement. Then plan according to it.
Activities of Consumer in Financial Management • Earning • Spending • Borrowing • Savings
Conclusion • Personal finance is the process through which an individual or family manages money and future. • If there is less finance or bad credit then there is way to manage them.
References • http://en.wikipedia.org/wiki/Personal_finance • http://www.investopedia.com/terms/p/personalfinance.asp • http://www.investopedia.com/terms/p/personalfinance.asp • http://www.yourdictionary.com/personal-finance • https://48factoring.com/blog/ • http://www.slideshare.net/deborahburns/personal-finance-101-ppt