We all live in a very complicated world, which is really unpredictable and uncertain, but I do believe that our fate in the future does lie in our own hands, and we have the power to make our future and the future of our families and children more brighter, and that can only happen if we engaged ourselves in useful and beneficial activities. In this day and age, many lucky chances, opportunities and favorable circumstances are available to each and every individuals all over the world, which could provide and supply them the advantages, the assistance and the benefits that they deserved to have in their life, however, to be able to achieve and obtain those benefits, assistance and advantages does not come in an easy process which is why the people should have the right and proper skills and knowledge in order to achieve those advantages and benefits.
The study of finance compromises of several things which involves money or any other things with monetary value, such as banking, credit, investments, financial systems that includes assets and liabilities, the study and creation of money, financial instruments and management of money, and finance is basically categorized into three namely the corporate finance, public finance and personal finance. Having the knowledge about personal finance is very useful and helpful to each and every individuals all over the world, especially the individuals who wants to make the extra earnings that they have obtained from their work into a much beneficial factors in the future, which can also be used in times of needs and emergencies. So basically, personal finances teaches each and every individuals, especially the professional and workers the right and the proper methods of money management, and that is by spending less and in the result they could a whole lot more than what they have in the first place, and that also includes spending only for your and your family’s basic needs in life such as shelter, food and water, budgeting the money and saving, as well, is being taught in personal finance. The most important component of personal finance is what we called as financial planning, and the whole process includes five steps which could help the individual in performing properly and correctly their plans and goals for their finances, and it includes assessment of the balance sheets, income statements and financial statements of the individual, making and designing your own set of goals, write down the details on how you can carry out your plans and goals, executing the plans and goals and finally is to monitor your plans if it is right and reassessment and adjustment can be done if required. Financial planning may include investments such as bonds, mutual funds and stock market, various kinds of banking products such as checking, credit cards, savings account and consumer loans, insurances such as life insurance, health insurance and disability insurance, retirement plans, educational plans, income tax management and social security benefits.