Understanding personal finance Term Paper Example | Topics and Well Written Essays - 1000 words

Understanding personal finance - Term Paper ExampleThis pay off entrust pick out under the personal finance category. Individuals argon also made planning to localise their financial resources in a proper place so that they after part enjoy the maximum benefit. They whoremonger deposit in wide range of banking products or stock market instruments (bond, mutual fund, demat account etc.). Banking products take on fixed deposit, current deposit, saving account, recurring deposit, many damages scheme (life insurance, health insurance, medi claim, disability insurance etc). Maximum individuals are like to invest major % of their monetary resource in the banking products especially in the fixed deposit because in such case risk factors are very less and gold is invested in secure place (especially public sector banks or government undertaking banking organizations). They also understand strategic plans for proper pension scheme, retirement plans, income tax focusing, wealth tax management, property tax management and social security benefits.Financial planning is the most important part in the personal finance. This can be said that planning is the key component in this field. Without proper and effective planning elevate the amount of personal finance and monitor the flow of financial resources (both inflows and out flows) is very difficult. There are few steps involved in the financial planning. These steps are as follows.Assessment- Assessment is the initiative step of the personal finance planning. It is required to understand the actual situation and financial or monetary position of a person. Financial statements are required to assess the financial situation. The residuum sheet will be prepared on individual person and not on the organization. So this is called personal balance sheet. Personal assets such as car, furniture, house, stocks, cash at bank, cash in hand will come under the asset side of balance sheet and personal