November 12, 2012
With the development of the society, more and more people realize the important of personal finance. However, people are not familiar with personal finance. Although they know what they can do, they don't know the details of the personal finance. Many people who like to buy anything they don't know how to control the reword. When the day reaches the half of the month, they suddenly find that there is rarely money in their pocket. When people ask them where their money is, they don't know. It is very important for people to know what personal finance is. Personal finance is not only for the household but also for everyone who want to make more money or save money. There are a lot of branches in personal finance. Therefore, people should be familiar with it at first. People should know what are personal finance, the importance of personal finance, and the foundation of personal finance. Financial planning is also a important way to go through personal finance. The personal financial statement could help financial planning work well. However, if people just think how to make money, it is not enough to make up the personal finance. It also need save money. If people don't save money, it is useless for people to do personal financial planning. In a word, personal finance contains three parts that are what is personal finance, personal finance planning, and saving money. The Definition of Personal Finance
What is finance? Bach said: "The management of large amounts of money, esp. by governments or large companies" (2003, p71). It shows people the definition of finance. So what is the definition of personal finance? What will personal finance bring to us? People learn how to enlarge the cash flows and then maintain their operations and offer for their interests is personal finance (Altfest, 2007). The cash flows will decide people's personal finance. It is the key to make someone's personal finance better or not. Personal Financial Planning
Financial planning could make people reasonably manage their money. Sometimes, if people don't use financial planning, their financial situation will be in trouble. People live in a fast-tempo society which has a growing number of financial alternatives offered to us, so financial planning is important. In the meantime, information through all kinds of media, as well as the internet, is able to help us decide the selections. Doing wise planning makes people reach their goals. For financial planning, it includes getting penetration into the efficient way to execute a task and then dealing with it in a reasonable, regimented way, makes people to go for far more targets (Altfest, 2007). People could use a lot of information to make financial planning. Financial planning has its system to make people decide what they could do. The Foundation of Personal Finance
Personal finance likes the knowledge that people could learn. However, personal finance needs some elements to run it. Therefore, work, investment, and the market found the foundation of the personal finance. If there is no this three factors, the personal finance will have no space to develop. These factors related by people's life, personal finance now don't look just like concepts. Work
If people have no jobs, they will have no income. The personal finance will be in trouble or no money. If people's jobs are satisfying, demanding, and economically rewarding, people will feel happy. But if people's jobs can't gain anything, everything for people will mean nothing. Nobody can deny it would be difficult to find the right mixture of factors for people's working hours, but the goal is desirable (Rosefsky, 2002). That's why people need work. Then, income will bring people other income not only work income but also investment. Market
If people have money, the first thing they want to do is the...