Investing, Budgeting, Life insurance, Saving, and managing debt. All comes under the example of Personal Finance. When to invest in any company for a certain period of time, you will receive a tax-free amount after some years. Life insurance is your personal finance and when you save money or manage your debts it all comes in personal finance.
In this blog, we’ll explain these examples in brief and an easy way with simple examples, but first, you should know “what is Personal Finance ?”
What Is Personal Finance?
Managing your expenses and saving for your future and family by using different methods like Investing, budget making, bank saving, and debit managing.
Or you can listen to the definition which says “Personal finance encompasses the strategic organization and control of individual financial endeavors, including the generation of income, expenditure, savings, investments, and safeguarding. ”
What Are The Assets Of Personal Finance?
Anything you may own in the future that has a Monetary value comes under the asset of personal Finance. We have categorized them into two main types Tangible & Intangible assets.
Tangible Assets: All the physical things you can touch or own come under your Tangible assets. For example: Properties, Vehicles, Cash, Your Saving Account, Investment accounts, jewelry, and others.
Intangible Assets: It is just the opposite of tangible assets, all things you can’t touch but have some value are known as Intangible assets such as Patents, Trademarks, & property licenses.
What Are The Useful Tools In Personal Finance?
From Investing to managing your debts, all are useful tools in Personal Finance. Let’s learn about 3 of them in a little brief.
Investing
Suppose you buy a motorcycle in the year 2001 worth 60000 INR, now if we look at it today, it will be nothing just an old second bike. But if you invested 60000 INR in the company as 18 INR per share, you would have 3330 shares which are worth more than 10,19,00,000 (more than 10 crores). At 56,61,111 INR per share, the best part is that all gain and profit will be tax-free.
Debts Managing
Taking care of debt is like climbing a pile of bills, so if you keep track of your income, make a list of your bills (like loans, credit cards, etc.), and make a plan to climb. If you want to get the most interest, do you pay the biggest peak first, or the smallest peak first? The question-and-answer site Quora can help! Look up “debt snowball vs. avalanche” or “saving on credit card interest” to get help on your way to being debt-free.
Life Insurance & Saving
Two important parts of personal finance are life insurance and savings. If you die, life insurance will protect your family financially and be a safety net for them. Think about John, the family man, who had life insurance. The benefit helps his family pay their bills if something happens to him.
On the other hand, savings are for things you want to do in the future. Sarah has been saving for retirement since she was young. Over time, her savings grow, giving her peace of mind in her older years.
The point is, that life Insurance helps your family live a comfortable life and provides them secure life in case you die.
So, in a world where money is the only thing that matters in life, understanding how to spend it wisely and preserve it for future security is critical. Finance Seekhon is the place to learn all of the fiance tactics step by step, with complete professional advice.
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