THINGS EVERY GRADUATE MUST KNOW ABOUT PERSONAL FINANCE

Introduction

Many people are unaware of personal finance. For such people, it becomes difficult to find the solution to most of their financial problems. Another important aspect of personal finance is that you can use it for yourself and your family. A graduate is supposed to take responsibility for his family. Also, he has to plan so many things for his future. It includes specialisation in his degree, job and other opportunities. A person who is well familiar with the term personal finance can plan better than a person who does not understand it. You can better fulfil the needs of the hour. Similarly, the chances of achieving future goals increase to a great extent. As per its importance, this article aims to discuss different aspects related to personal finance.

1. What do you mean by personal finance?

The term personal finance is used very frequently to organise money. This organisation of money can be in different forms. It includes different ways to deal with money. It can be in the form of money calculation for different tasks. Furthermore, you can make a detailed chart that covers all of your pay-outs. Apart from that, personal finance focuses on investments, savings and many other financial practices.

2. What is an Example of Personal Finance?

According to a firm providing accounting dissertation writing services, we can find bundles of examples that involve personal finance in our daily lives.

  • To live, you have to eat daily. So, you have to spend money to buy things to eat. It can be for you or the whole family.
  • As a graduate, you may plan to go for a specialisation in your field. For this task, you have to pay every semester. You have to plan for it till the end of your degree. If you do not plan, you have to face unpleasant consequences. You have to keep in mind that you may have to freeze your semester. and avoid such unpleasant situations by understanding personal finance. You can plan such things with your parents and siblings as well.
  • As a respected citizen, you have to pay taxes to the government. Similarly, social security and loan payments are unavoidable aspects of our life. It works well in all these aspects. Suppose you are in a café with your friend; you are having a debate with your friend if the coffee is economical or the tea. It is also a good example of personal finance.

3. What are the 5 Areas of Personal Finance?

Following are five main areas of personal finance:

  • Income
  • Spending
  • Saving
  • Investment
  • Protection

Let’s discuss these areas briefly.

  • Income

Income is the very first and most important area of personal finance. The rest of the areas are dependent on income. Income covers all sources of finance, including salary, pocket money and pension.

  • Spending

While spending, you have to include all short and long term needs. From buying a pen to a house, you need to spend money. The cash outflow is termed as spending. As per your financial status, you have to control spending. In this way, you can better plan things for your future.

  • Saving

The unspent money works as savings. You can utilise savings for urgent needs. The saving can be planned as well as unplanned. It is better to plan it, not ask someone for a loan.

  • Investment

Investment is a risk, but it can make your future bright. This area of personal finance returns money in a good way. You can invest in a company or personal business or you can buy some stocks for other sales. You can save money earned through an investment.   

  • Protection

Protection is an area that saves you from risk. The lesser risk shows more safety. For example, life insurance protects your money for the future. On the other hand, you buy a house and sell it for rent. The money from rent works as a saving, and it protects your property from different risks.

4. What are the 7 Steps in Personal Finance?

There are different types of people. Some people work on a task as a passion, while others take the task as the need of the hour. The passion for anything makes it easy to deal with it better. Suppose your friend daily plans his activities as per personal finance. On the other hand, you only plan when you have to achieve a goal. You can observe a clear difference in the financial condition of both of you. Your friend may not have to take a loan because he saves daily. If you want to ensure personal finance in your activities, you have to follow the steps mentioned below:

  • Set a goal that can motivate you for personal finance.
  • Go for specific, measurable, attainable, realistic, and timely (SMART) goals.
  • Make a budget for every single day as well as for every week.
  • Week and month, check out your sales and purchases.
  • Try your level best not to ask for a loan.
  • Schedule all activities and make sure to complete each task on time.
  • Go for the different sources of income.

Final Thoughts

It is not wrong to say that the financial condition of every individual changes over time. The ups and downs are a part of life. To deal with these ups and downs, it is necessary to plan something about it. The planning can be in short as well as in the long term. In short term planning, you can manage daily or weekly budgeting and saving. Similarly, you can manage all investments and large savings in long term planning. In simple words, you can save your present and future through personal finance.

7 thoughts on “THINGS EVERY GRADUATE MUST KNOW ABOUT PERSONAL FINANCE

  1. In Canada, the cannabis market is fragmented and confusing. Different provinces and territories have different rules about how old you need to be to buy weed, where you can buy it, and how much you can possess. As we’ve talked about, legal weed is a term used to describe cannabis West Coast Cannabis that is cultivated and sold legally under certain regulations and conditions.

  2. One of the main benefits of using an buy weed online canada is the convenience it offers. Customers can browse products, place orders, and have them delivered to their doorstep, all from the comfort of their own homes. This is especially useful for those who live in remote areas, or who have mobility issues and find it difficult to travel to a physical dispensary.

Leave a Reply

Your email address will not be published. Required fields are marked *