Personal Finance

Personal Finance

Introduction

Personal finance is the application of the principles of finance to the choices and decisions of an individual (natural person) or a family. It involves analyzing the financial management of a household. The assets, cash flows in and out of, the assets and liabilities of a person are summarized in a table in order to improve their management through asset management, a household budget and the drafting of budget plans compatible with debts of the family. Personal finance is a branch of personal (household) which is characterized by the use of financial techniques and information technology. From the situation of a family is drawn a simplified balance sheet and one or more targets medium to long term. The achievement of the objectives is subject to compliance with an operational plan, drawn up by financial advisors, binding purchase decisions and expenditure of the family over time. Compliance with the plan shall be subject to annual monitoring and can possibly be changed in the event of significant changes into the family (eg, loss of job, birth of a child, etc.). The plans of personal finance are financial instruments particularly common in Anglo-Saxon countries.

Personal Finance

Do you know how to distribute and control your finances? Today, some people live the fifteenth and last, without thinking that one day an unexpected event may occur. Because of the common of this situation, there are now experts in personal financial planning, precisely for those managers and individuals who do not know how to manage their financial future. Here we give you some recommendations on this matter. What is an emergency fund

An emergency fund is a separate account from your ordinary account that has two purposes:

in case of unforeseen expenses but necessary, such as a PC or car repair or a medical condition to support the fund can help cover the emergency

in the event of job loss, you can tap into your emergency fund to cover the daily requirements during the first period of the unemployed, in order to be able to focus your energies on finding a new job (rather than on how to pay the rent of next month). In a global economic situation like the one we are experiencing, large-scale unemployment and layoffs carpet can put into serious difficulties, especially those who have a family to provide for.

Having an emergency fund means ensuring yourself not only not having to borrow to meet unexpected expenses, but also do not have to ...