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personal finance
personal finance Wiki
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Personal finance, This article or section includes a list of references or external links, but its sources remain unclear because it lacks in-text citations. You can improve this article by introducing more precise citations. Personal finance Credit and Debt Credit card Credit union Debit card Debt consolidation Loan Moneylender Mortgage Pawnbroker Employment contract Salary Wage Paycheck Employee stock options Employee benefit Direct deposit Retirement Retirement plan IRA Pension Social security Business plan Corporate action Financial Planning Financial adviser Estate planning Finance series Financial markets Financial market participants Corporate finance Personal finance Public finance Banks and Banking Financial regulation edit this box Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save and spend monetary resources over time, taking into account various financial risks and future life events. Components of personal finance might include checking and savings accounts, credit cards and consumer loans, investments in the stock market, retirement plans, social security benefits, insurance policies, and income tax management. Contents 1 Personal financial planning 2 Popular Tools 3 See also 4 References
[edit] Personal financial planning A key component of personal finance is financial planning, a dynamic process that requires regular monitoring and reevaluation. In general, it has five steps: Assessment: One's personal financial situation can be assessed by compiling simplified versions of financial balance sheets and income statements. A personal balance sheet lists the values of personal assets (e.g., car, house, clothes, stocks, bank account), along with personal liabilities (e.g., credit card debt, bank loan, mortgage). A personal income statement lists personal income and expenses. Setting goals: Two examples are "retire at age 65 with a personal net worth of $200,000 American" and "buy a house in 3 years paying a monthly mortgage servicing cost that is no more than 25% of my gross income". It is not uncommon to have several goals, some short term and some long term. Setting financial goals helps direct financial planning. Creating a plan: The financial plan details how to accomplish your goals. It could include, for example, reducing unnecessary expenses, increasing one's employment income, or investing in the stock market. Execution: Execution of one's personal financial plan often requires discipline and perseverance. Many people obtain assistance from professionals such as accountants, financial planners, investment advisers, and lawyers. Monitoring and reassessment: As time passes, one's personal financial plan must be monitored for possible adjustments or reassessments. Typical goals most adults have are paying off credit card and or student loan debt, retirement, college costs for children, medical expenses, and estate planning.
[edit] Popular Tools GnuCash (Free Software) Microsoft Money Quicken KMyMoney Mint.com
[edit] See also Accounting software Credit card debt Corporate finance Debt consolidation Equity investment Insurance Investment List of personal finance related articles Mortgage loan Payday loan Personal budget Public finance Settlement (finance) Wealth
[edit] References Kwok, H., Milevsky, M., and Robinson, C. (1994) Asset Allocation, Life Expectancy, and Shortfall, Financial Services Review, 1994, vol 3(2), pg. 109-126. v €¢ d €¢ e General areas of finance Financial markets · Investment management · Financial institutions · Personal finance · Public finance · Mathematical finance · Financial economics · Experimental finance · Computational finance Retrieved from "http://en.wikipedia.org/wiki/Personal_finance" Categories: Personal financeHidden category: Articles lacking in-text citations
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