Notes On Personal Finance And Financial Management Essay examples
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 consisted of the income statement, the balance sheet and the cash flow statement gives clear information on my current financial situation. As a recall, knowing your current financial situation is the very first step in managing successfully your personal…