Conclusion Of Personal Finance
University of the People
Introduction Personal finance is all about how to effectively manage your money in order to achieve set goals. To achieve financial goals it is crucial that you adequately plan your life such as how, when and on what to spend your money because this discipline will enable you to stick to your goals. Therefore, you have to have a budgeted life. Budget refers to the financial plan which contains information on expected expenses and income within a set period of time. What financial tools described in this chapter can help you make better financial decisions?
We know that success or achievement does not come before plan and good discipline. Furthermore no good decisions can be made without reliable information. The financial tools that fascinated me in this chapter are the different kinds of budgets, the financial statements, the microeconomics indicators, the macroeconomic factors, and the time value of money. Budgets contain information about how to finance your life such as when, and on what to spend your money. Put differently, they provide meaningful information about the possible outcomes of the alternatives that you selected among the others. The financial statement which …show more content…
Specialized budgets are strongly linked to comprehensive budget by the fact that a specialized budget is a part of a comprehensive budget. Using a mathematical language, specialized budgets can be considered as sub-sets while the comprehensive budget is the set. Conclusion Financial statements and budgets help us project the effect of financial choices that we have made. In addition, they are important tools for financial decisions because they provide good financial information. We do know that no good financial decision can be made without good financial information. Budgets which include comprehensive and specialized budgets are unmistakably important to effective finance