Personal Finance

-


Personal financial planning involves making plans in order to achieve personal financial goal. It refers about all the necessary steps which need to be taken in order to develop a personal financial goal. It plays a very significant role to implement a plan for a family as well as individual. A lot people in this world earn huge amount money but still at the end they are not able to save any money rather they rely on credit cards, bank loans and borrow from others. This might happen due to impulse buying, compulsive buying or lack of seriousness in terms of spending money wisely, all these factors may lead an individual in an insolvent and bankrupted situation. Therefore, it is pivotal to do personal financial planning.

Personal financial planning is also important when we want a chase a financial goal. Different individual have different personal financial goal in various stages of their life. It depends on individual’s personal factor such as- marital status, number of children, family members, financial position, health, effort, personality, profession and so on. Hence, if one’s targeted financial goal is buying house, another’s may be buying car. But if a person already possess a luxury car and house he or she may be provoked by different types of personal financial goal. In another word, that particular person’s goal may be possessing a private jet or to buy a helicopter. But in order to accomplish such goal that person need to own huge amount of wealth, only then this type of goal will be viable to gain.

 

There are some economic factors also linked with the financial planning, such as- inflation rate, unemployment rate, interest rate and so on, which influence in the personal financial goal. For instance, if inflation rates is high then the prices of goods will be higher also which means consumer have to pay more to possess the product. And then, if unemployment rate high then it will be difficult to find a job and earn money, so without money a person will find difficulties to manage funds for his or her personal financial goal. Another example, if bank charges high interest rate to customers for taking loan, it will cause customers to pay higher money for loan which will at the end effect the individual’s personal financial goal.

Thank you for reading. Please stay tune for more articles.

Comments

Post a Comment

Popular posts from this blog

Ripple Effect on Malaysian Market in 2018

-
Image
When investors start selling off their stocks it could only mean that they’re panicking for a reason that could affect them unfavourably, especially the foreign investors who were and still are the net sellers until this day, which is the 6th of July. It has already been more than a month have since the publishing of that article and yet the foreign investors are still selling off for various and logical reasons, which we will go through soon enough, As most of us may know, there was the election for the next prime minister, which investors were already anxious about, adding to that, the opposition won, leaving investors both local and foreign in an uncertain situation, therefore, and the massive sell off. This happens everywhere around the world where investors who invest in that nation are always on the edge whenever an election of a huge scale takes place. Investors would panic if they feel like things are going to be uncertain, unpredictable, and worrisome. So, as they panic, most...
Read more

Trading Experience with MAYBANK and AIRASIA

-
Image
Maybank LTD MAYBANK C24 11552   Malayan Banking Berhad (MAYBANK) is known as one of the blue chip counter in KLCI. This company engaged in all aspect of commercial banking service and related financial services. For example they provide loan and finance product to their customers.   We choose Maybank to monitor because it is one of the leader in the finance industry. Hence it will lead the whole finance industry index and we found a finance tool which can leverage our profit with a little capital. In 23/1/17, we had decided to buy in 800 unit of Maybank C24 on RM0.125 because of  the premium of the counter is not very high and its maturity date is 30/6/17 with a very high gearing which can help us to maximize our profit. So, we decided to start collect bellow the price RM0.13   we believe that the coming quarter report will bring out a flying color result due to the better performance of GDP growth in last quarter of 2016 and the dividend will be announce based on t...
Read more

Three branches of finance

-
Finance can be categorized into three major areas as below: In  personal finance , decisions are made about paying for education, financing goods such as real estate and vehicles, buying health and property insurance, and investing and saving for retirement. According to the Financial Planning Standards Board, the six key areas of personal financial planning are: Financial position: understanding what resources are available by looking at the net worth and cash flow of a household Adequate protection: the analysis of how to protect a household from unforeseen risks Tax planning Investment and accumulation goals Retirement planning Estate planning Corporate finance  is all about providing the funds for a business’ activities. Finance managers: Balance risk and profitability Study and forecast economic trends Review company reports and suggest efficiencies Work to maximize stock value Manage funds, including choosing a portfolio of investments Apply principl...
Read more