Definition of Personal finance:
Personal finance is about meeting personal financial goals, whether it’s having enough for short-term financial needs, planning for retirement, or saving for your child's college education. It all depends on your income, expenses, living requirements, and individual goals and desires—and coming up with a plan to fulfill those needs within your financial constraints. But to make the most of your income and savings it's important to become financially literate, so you can distinguish between good and bad advice and make savvy decisions.
Personal finance is a term that covers managing your money as well as saving and investing. It encompasses budgeting, banking, insurance, mortgages, investments, retirement planning, and tax and estate planning. It often refers to the entire industry that provides financial services to individuals and households and advises them about financial and investment opportunities.
Use of the principles and techniques of corporate finance in an individuals money affairs, especially the methods of allocation of financial resources. Its objective is financial security and independence so that an individual or a family can meet expected expenses and withstand monetary emergencies. It involves making prudent financial decisions, budgeting, saving, investing, insurance, tax planning, retirement planning, and estate planning.
How to use Personal finance in a sentence?
- Being disciplined is important, but it's also good to know when to break the rules—for example, young adults who are told to invest 10% to 20% of their income for retirement may need to take some of those funds to buy a home or pay off debt instead.
- Smart personal finance involves developing strategies that include budgeting, creating an emergency fund, paying off debt, using credit cards wisely, saving for retirement, and more.
- We had to take some pride in our personal finance and make sure we would be okay with money and money related matters.
- If you want to break down your personal finance you need to know where all of your accounts currently stand.
- Few schools have courses in how to manage your money, so it is important to learn the basics through free online articles, courses, and blogs; podcasts; or at the library.
- The demonstration of the skills and competence with the analysts knowledge of personal finance was useful in drafting the new terms.
Meaning of Personal finance & Personal finance Definition