There are several courses available on Finance topics, but seldom we find any course on Personal Finance. So, what is Personal Finance?
Investopedia explains Personal Finance as following:
All individual financial activities fall under the purview of personal finance; personal financial planning generally involves analyzing your current financial position, predicting short-term and long-term needs and executing a plan to fulfill those need within individual financial constraints. Personal finance is a very individual activity that depends largely on one’s earnings, living requirements and individual goals and desires.
As it is rightly summed up, at last, Personal finance is a very individual activity that depends largely on one’s earnings, living requirements and individual goals and desires.
Personal Finance is a lifelong activity to achieve individual goals and desires. This activity includes several aspects, below are few of them:
- Assessing current financial position.
- Understanding our risk tolerance, and assess it on every life events like marriage, child birth, near to retirement etc.
- Risk protection, by buying insurance.
- Understanding tax calculations and investing to save tax.
- Saving and investing for goals and desires, as per risk tolerance.
You are not going to be younger than you are right now. So, let’s get started on our financial journey by performing on above aspects, if have not done already.