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Personal finance resources


Personal finance resources can help in managing the personal finance of an individual or a household. This personal finance is anything and everything which involves ‘money’ in the personal front. This covers banking, investing and saving, budgeting, planning for the retirement, mortgages, insurance, budgeting and all other financial dealings of an individual.

Managing Personal Finances:

Opting for personal finance resources offers a clear-cut method to manage your finance in the different areas.

1. Income:

The source of inflow of the cash is termed as ‘income’. This money, received by an individual, is used for personal and family support and also includes savings. This needs to be the starting point of the planning for personal finance resources.

The income sources can be

*hourly wages

*Salary

*Bonuses

*Dividends

*Pensions

These sources offer the cash which is used by an individual for spending, saving and other investments.

2. Spending:

Spending includes the money spent on consumer goods and services and is not an investment. There are no chances of expecting any returns. The spending is further divided into a) cash and b) credit.

Spending includes

*Mortgage payments

*Taxes

*Rent

*Travel

*Food

*entertainment

*Credit card payments

In case the spending is more than the income received by an individual than he/she has a deficit. Earning income is just as important as managing finances. Good habits formed for spending is definitely ‘good’ management of finances.

3. Saving:

Saving is that additional cash which is kept aside from the income regularly and can be used for either spending or even investing. The difference between what an individual earns and what is spent is normally used as saving. A personal finance resource tends to stress more on this aspect of ‘saving’.

Savings include

*Savings bank account

*physical cash

*money market securities

*Checking bank account.

You have many people saving a part of their income for future spending and other emergencies.

4. Investing:

Purchasing those assets which some sort of return is termed as investment. These assets can get more money than what was invested initially. It is not necessary that all the assets invested in, can offer a positive return and thus investing can be considered as ‘risky’.

Some common investments include

*Bonds

*Stocks

*Real Estate

*Mutual Funds

*Commodities

*Private Companies

*Art

Investing tends to be complicated where personal finance is concerned. This can get easy if you seek the help of professionals and follow a specific finance plan.

5. Protection:

Protection of an individual includes a number of products and services which guard an individual against unpredictable circumstances.

The most common products for protection are

*Estate planning

*Health insurance

*Life insurance.

You need to seek professional help and advice which are apt for this personal finance resource.

The most simple steps to ensure an apt personal finance plan includes detailed planning of the finances, budgeting, paying off the debt and seeking advice as ad when required. You need to give yourself importance and ensure there is enough and more savings for your personal wants, needs and emergencies. A little effort is all that is required to ensure a financially secure future with the help of personal finance resources.