This article talks about personal finance. Personal finance is the branch of finance that involves financial decisions taken by individuals in order achieve their goals. Personal finance involves financing goods like cars & real estate, buying insurance, making investments as well as saving money. Personal financial decisions may also involve managing the impact of taxes and paying back the debts.
Definitions of Personal Finance
- All financial decisions and activities of an individual, this could include budgeting, insurance, savings, investing, debt servicing, mortgages and more.
- Personal finance refers to the financial decisions which an individual or a family unit is required to make to obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.
- Personal finance is the process of effectively managing assets in the possession of an individual or a family.
Objectives of Personal Finance
There are certain issues that can be resolved by effective personal financial management. The purpose of financial management is not only to meet these objectives but also to answer the underlying questions. When it comes to finance, an individual faces many questions like
- How to protect themselves in case of accidents?
- How to effectively save money?
- How to achieve financial freedom?
- How to manage taxes?
- How to manage credit? Etc.
Areas of Personal Finance
There are 5 major areas of personal finance where an individual should focus his or her energy in order to achieve financial growth.
- Assessment of Financial Situation
- Insurance and Protection against accidents
- Planning Investments
- Managing Taxes
- Securing Retirement Plans
Personal Finance streams
Personal finance is one of the most sought after fields in the present world. There are plenty of businesses that thrive on personal finance related services and products. Some of the popular personal finance streams are as follows.
- Vehicle Finance
- House Finance
- Direct Finance
- Consumer Finance
In conclusion, personal finance is the process of effectively managing personal assets and involves financial decisions taken by individuals in order to achieve their financial goals.
This page talks about Finance. Finance is the process of money management for achieving certain objectives. The word finance was adopted by English community from a french word in 18th century. Over the course of time, this has become one of the most prominent factors that define human society. All of our economic activities involve money management and we can not imagine a world without finance, at present. We need finance for performing most of our productive activities like paying bills, purchasing goods, investing money, and so on.
Definitions of Finance
- Finance is the study of how people allocate their assets over time under conditions of certainty and uncertainty.
- Finance is a broad term that describes two related activities: the study of how money is managed and the actual process of acquiring needed funds.
- Finance is the management of money and other valuables, which can be easily converted into cash.
- Finance is a branch of economics concerned with resource allocation as well as resource management, acquisition and investment. Simply, finance deals with matters related to money and the markets.
Types of Finance
Finance can be broken down into three broad categories
Theory of Finance
Branch of economics that studies the impact of financial variables is known as Financial Economics. There are plenty of factors like interest rates, prices, economic constraints, resource availability etc. that affect the policies relating to finance. Study of these variables and their relations with each other is part of the theory of finance. There are five major branches that require specialized knowledge of finance.
- Financial Economics
- Financial Mathematics
- Experimental Finance
- Behavioral Finance
- Asset Finance
Sources of Finance
There are three major sources of finance for any institution or individual.
- Owned funds
- Raised funds
- Borrowed funds
There is only one way to create financial freedom and that starts with creating finance. You can not talk about freedom until you have what it takes to create it. There are three stages in the cycle of financial freedom. First is to create funds, second is to use them and third is to grow them. It is difficult for most people to reach to the third stage because they keep cycling between the first two stages. Things change when you hit the third stage.
Lucre has been one of the most elusive forces in the history of mankind. It’s not easy to get hold of it. It requires practice, patience and a rigid mind that can stick to the plans. Creating financial freedom requires all of that. Think of a life where you do not have to worry about your daily, weekly and monthly expenses, where your money works on its own to take care of not only your expense but also the leisure. Following are the 7 Steps to Financial Freedom
- Assess of your current situation
- Set your goals
- Start saving
- Make budgets
- Reinvest your money
- Minimize taxes
- Manage your debt
- The first step is to ensure that you are at the right place and your life is well positioned to help you reach your financial goals and dreams. It’s difficult to be productive in an environment that is not nourishing you in the right way. Take your first steps today itself if you do not find yourself at the right place. Life is short to waste time on things that you don’t enjoy a lot. F
- Second thing is to decide what is financial freedom for you? It can be $1,000 for somebody and it can be in millions and billions for somebody else. Usually what you decide as financial freedom today doesn’t remain so when you actually reach there. Don’t let that happen. Decide today how much money do you need to live a good life and build your life around it. There is no point running in a race that never ends.
- Money doesn’t grow on trees. You have to earn it and then save it. Start saving today if you are not already doing that. It may not sound very cool in the beginning but it’s a habit for which you will have to train your brain. You will be surprised to see the results if you consistently save a part of your income on a regular basis. If you know the right ways to grow your money, your small savings can turn into huge assets.
- Be organized and make budgets. Don’t let your finances rule your life. Be your own boss and start managing your finances. You will see how much money you waste on things which are not all that necessary for you. Making weekly and monthly budget helps you keep an eye on your inflow and outflow of the money and is a great tool for improving your financial situation.
- Don’t let your money rest in your bank. Make it work. Put it to something that you find interesting. They can be stocks, properties and other assets depending upon your financial preferences. Try to establish connections that can pay you on a monthly basis without your continuous attention. This is the most important part of your financial stability. We will expatiate on this point in my future hubs.
- Taxes are one of the bad evils when it comes to managing your financials. Don’t try to play with them on your own. Take professional help. Talk to people who know the tax structure of your country inside out. There are hundreds of correct ways to direct your money in appropriate directions. One of the most important lessons for managing your taxes effectively is not to pay them before-time. It’s always better to earn your income, spend it and then pay taxes. It’s a mistake to earn income, pay taxes and then spend it.
- Debt management is one of the places where almost all of us fail at some point of our lives. It’s important to learn from your own mistakes and not to spoil your financial condition again and again. The golden rule of debt management is to keep them as low as possible but never zero. Always prefer to go with high down payment and low installments for a better management of your debt.
I hope this article was useful in helping you organize your thoughts for your financial well being. Follow me for receiving updates on my future articles. You can read more on Personal Finance by clicking here.
This page lists down a number of research topics in Finance. Deciding the topic is the first step in any research. A good selection of a financial topic can make or break your thesis, research paper or dissertation. It’s a tedious process to find the appropriate topic for research. It takes time and energy to go through huge amounts of information and deciding upon the areas of interest.
It is always a good idea to pick a topic that is part of your academic syllabus because it will help you align your knowledge with your research. After a careful selection of the topic, it is your next job to prepare a thorough outline of what all things are expected from your research. Make sure that you look for a topic that is easily searchable and accessible. It is hardly of any use to pick up a topic where you cannot gather enough data and information to complete your research.
The most easily accessible places for looking ideas on research topics on finance are the magazines and financial books. You can also consider visiting a local library for an updated list of current issues. It is not always easy to find a topic of your interest in financial domain and hence a list of important Finance topics is shown on this page for the help in your finance research.
- How do interest rates affect stock markets?
- Importance of microfinance in developing countries.
- Effect of privatization in the banks of developing countries
- Globalization: pros and cons
- Stock market variations
- Money supply chain
- Factors affecting mutual funds Performance
- Performance study of distribution channels
- Mutual fund characteristics in developed countries
- Benefits of free cash flow
- A study on dividend payout ratio
- Stock prediction using existing approaches
- Long Run performance of IPOs in a company
- Corporate social responsibility of a money-centric company
- Impact of fiscal Policy on stock markets
- A study on inflation and its effects
- Equity choice for funds
- Relationship between political influences and stock returns
- Indicators of stock market returns
- Comparison of performance between banks and financial companies
- Indicators of financial crisis
Personal Finance Management: Tips
Personal finance management refers to the decisions taken by people to achieve their financial goals. Unfortunately, it is not something that is the taught in the colleges or schools but we all face the challenges of financial planning in our lives. We are listing here some of the good practices that you can adopt for a better management of your personal finance.
- Assessment of your current situation
A person’s financial situation is usually assessed by his balance sheets and income statements. Balance sheet gives a fair idea on the assets and liabilities while income statements give an insight towards the income and the expenses. Regular monitoring of the money flow is the most important aspect of the personal financial planning.
- Setting your goals
If you don’t know where to reach, you can very well not reach there. Deciding your yearly and lifelong financial goals is the first step towards personal financial management. It is advisable that you should spend good amount of time in analyzing your needs and finding the areas where you need to work most.
- Making budget
The second step is setting a budget for your objectives. Make sure that you assign sufficient amount of money for each of your goals so that your plans do not die because of lack of funds. At the same time, you should refrain from over assigning your hard earned money for the things that can be done at lower costs.
The importance of saving cannot be undermined for an effective personal financial management. You should ensure that you save a definite part of your income every month. This is not only going to help you in tough times but also create a wealth that you can re-invest to earn even more money.
Investment is the most effective way for growing your funds. However, you should be aware of the involved risks and be prepared for them. The market is the best place to turn savings into wealth if you are an intelligent investor. Some of the options that you can consider for investing your money are as follows:
- Fixed Deposits
- Mutual Funds
Taxes are one of the most common evils that face in our lives. However, with intelligent planning and execution, you can minimize the effect of taxes in your income. Many of the investment options offer tax rebate to promote savings. The best way to manage taxes is to hire a local tax adviser and plan your savings and investments in the most optimum way.
- Debt Management
It’s your job to know when you should hold the debt and when you should fold it. Credit cards, personal loans, home loans, car loans etc. are some of the debts that we accumulate over a period of time. You should make sure that these debts are not eating away your hard earned money and clear away the bad ones on a regular basis. It is also a good practice to go for a high down payment and low installments.
Finance management is the management of financial assets in an organization. Standard practices can be applied for the better management of finance in order to achieve overall objectives of the company / organization. At the gross level, there are three stages in a financial management system.
- Creation of Funds
- Allocation of Funds
- Growth of Funds
Creation of Financial Resources
Creation of financial assets is the most challenging part in the lifecycle of an organization. Usually, the companies face this stage in the early days of their operations and they lack the expertise to create sufficient funds. A good stress should be given to the brand value and the overall goals of the company at this stage. Estimation of the capital requirement, determination of capital composition and identification of sources for funds are three most important aspects for successfully creating financial assets. A solid business plan can tremendously help the finance managers at this stage in ensuring regular and adequate supply of funds to the organization.
Management of Financial Resources
Second stage is the allocation of the financial resources. The funds should be utilized in maximum possible way at least cost. This is where a good financial manager is tested for his skills because he has to take decisions with regard to cash management. Cash is required for a number of purposes like maintenance of stock, purchase of raw materials, salaries, bills, rents etc. Finance manager has to plan, procure and use the funds along with maintaining a record of the expenses. There are tools and techniques that are available for ensuring optimum funds utilization inside an organization.
Growth of Financial Resources
A key finance planning decision is whether the profits that are earned by the business should be distributed to stakeholders or they should be retained for the further growth of the business. If the dividends paid to the shareholders are too high, the business would be starved of funds for the future growth. The net profit decision is typically made by the finance manager. It is his responsibility to declare the dividends and retain the profits for expansion and growth plans. Good planning and implementation skills are highly required for the surplus management and growth of funds.
Other than that, there are plenty of more things that can be considered a part of the financial management, e.g. investment decisions, dividend decisions and other financial decisions. Investment decisions can further include capital budgeting and working capital decisions.
You can read about personal financial management on this page.
About a month ago, the Standard &Poor’s took its rock-solid decision of stripping off one notch from the AAA credit rating of the US and since then the Americans have been wary about the impact of this on their personal lives. Hours later, the Federal Open Market Committee (FOMC), that sets the interest rates on the Federal funds shuffled them and created the mess among the already worried consumers. Interestingly enough, though it is being forecasted that the rates on all personal loans will raise post the credit downgrade and the consumers may need to run to negotiate debt, there is a silver lining of this entire financial happening. The Americans are gradually losing their confidence on the US government and this has rejuvenated their faith in themselves. They’re now of the opinion that without effective personal finance management, they may soon be nowhere. Here are some personal finance habits that you must incorporate within yourself during such crazy economic times.
- Build a frugal budget : During a time when the commodity prices are soaring unnaturally, the financial pundits opine that you need to write down your microeconomic plan so that you can keep a track on the money that you spend in a month and the amount that you need to save. To get best results, make sure the latter number is always bigger than the former. Remember that a penny saved is a dollar earned and the more you earn your dollars, you can stay safe during any unfortunate financial situation.
- Pay your credit card bills on time:Once you have a clear picture of where your money goes it’s time to take the solid steps to trigger your debts. To make matters worse, the credit downgrade will spur the interest rates on all your personal loans and therefore you may be hard-hit by revised monthly payments that may take a toll on your wallet. Pay on time to avoid any kind of late fees and penalties that add on to your monthly debt obligations.
- Save for surprises as they may happen anytime:The federal government has always given the consumers a lot of rights like the debt ceiling deadlines, congressional budget drama and the shuffling of the federal funds rates. All the aforementioned events have set the interest rates and the stock market on a roller coaster ride. You can only deal with your sudden car breakdown, unexpected medical bills and rising school costs only if you have an emergency fund. Save at least 10% of what you earn as savings can be a life-saver.
- Watch the numbers carefully: Your debt-to-income (DTI) ratio and the credit score are the two most important numbers that you need to keep track of. Pull out your credit report every month to check the negative listings that may drop down your credit score and make you unworthy of receiving new lines of credit. Avoid being a victim of identity theft. Use a debt-to-income calculator to help determine the ratio and always work towards reducing the DTI ratio to stay ready to achieve the best loan with an affordable rate.
- Be prepared for the bad: Get your personal finances ready for any financial climate so that you’re not mowed down in any adverse situation. Debts can have a catastrophic impact on your life, especially in this economic era. Therefore, instead of contacting a debt negotiation company to negotiate debt, take the above mentioned personal finance management steps to stay on an edge.
In modern parlance, MBA has become like buzz or trend. Everyone wants to do this course but have any of us realized why MBA has become fad. The reason behind it is investment both in terms of time and money. Moreover, it is of quite vantage for all those who want to pioneer themselves in business or those who want to start their career with lucrative salary. MBA in Finance stream provides you immense career opportunities. They can be hired by investment bankers, corporations and securities firm.
But prior to completion of your degree you have to finish innumerable projects. Searching for good MBA Finance project can be tedious task but we at Finance Management provide you following tips in looking out for good MBA finance projects topics.
Prior planning out for any project is important. It is advised to search resources which may guide you. The resources may include textbook, internet, your teachers or you can take help from your colleagues too. The finance projects topics must be relevant and efficacious. The topic should be interesting and should be chosen based on current economic condition. This is a sure shot way to engage your readers.
You can take ready reference from projects available on internet. After studying 3-4 projects you can try to make a unique project rather than emphasizing same old topics. These projects are quite helpful in gaining insight about how the projects are made and what are their limitations. You should also look out for desired outcomes. The purpose of the finance projects topics in MBA is to provide potential solutions and recommendations for the existing issues. The desires outputs have to be feasible in all ways so that you get good and appreciable MBA projects. If your project focuses on any problem and provides recommendations to sort out that problem then it may be called a good project and surely you will fetch better marks.
You can ask for some help from the experts. You may be denying this fact but several students are having many issues in finding the MBA finance projects topics. There is no need to be embarrassed or feel low but almost every one of us exactly feels like this at first. An advice from some good expert will work out best. There are so many websites available online that aid in providing suitable help to the students for finance projects topics.
All these tips will surely aid you in making a good MBA Finance Project.
It is an important branch of management which incorporates the knowledge of cost management and fiscal accounting. It usually tries to examine the data in order to evaluate the business position or the individual status so that users can make wise decisions.
These finance management books will tell you that the financial management system aids in planning for the future of the business as well as future savings by assuring that the flow of cash will always be positive.
The finance management books are essential for you to evaluate the quality of the asset, learn how to manage the risks, and how to identify these risks. To know more about them in detail you will have to take the help of some good and useful finance management books.
Read more about Finance Management.
Finance management books- Assist you to know the objectives of the finance management system!
It is true that the finance management books can only provide a better insight into the objectives of the finance management system. Moreover, these books render advice on how to allocate business earnings and capital, budgeting techniques. Through these books you become capable to assess the fund raising techniques for long duration or short duration depending upon your business requirements.
You can also estimate intangible assets, tangible assets and net worth of company as a whole.
All this is possible if you prepare for some good financial course and go through the best finance management books around. On a bigger note, this system aids in legal utilization of the capital so that you select the most ideal and best source in terms of capital. Almost all the fiscal models and tools are described in the finance management books. These models and tools have been designed for the evaluation of the portfolio management, risk elements of the security market, time value of funds, and for evaluating the present value of a project or an investment. Not only these you can also gain insight of Working Capital, amount of capital that company may need for its normal course of business.
The finance management books provide you the opportunity to learn the different ways to analyze the ratio so that you can assess long term and short term working capital requirements. The techniques and tools which are mentioned in the finance management books are highly capable of correctly estimating the intangible assets at the time of acquisition and merger of the companies. The best 5 finance management books are
- “The Smart Cookies’ Guide to Making More Dough” by Jennifer Barrett,
- “The Money Book for the Young, Fabulous & Broke” by Suze Orman,
- “Women & Money: Owning the Power to Control Your Destiny” by Suze Orman,
- “Debt Cures ‘They’ Don’t Want You to Know About” by Kevin Trudeau and
- “”The Total Money Makeover” by Dave Ramsey.
Finance house Kuwait was initially established in the year 1977 in Kuwait. It was organized as the initial operating bank in conformity with the Islamic Shari’a. This house has been listed in the Kuwait Stock Exchange (KSE) which has market capitalization of over KWD 2.667 billion as of 31 December 2008. The finance house Kuwait holds the total assets of KWD 11.291 billion and the deposits total of KWD 7.262 billion. It offers the Islamic Shari’a services and compliant products, investment portfolios, trade finance, real estate, covering banking, and other services and products. You will be glad to acknowledge the fact that since the 1980s, the finance house Kuwait has found multiple activities on the international level in terms of financial expansion.
The finance house Kuwait has demonstrated self governing banks in Malaysia, Bahrain and Turkey. This finance house has stake in several other Islamic banks. The investment activities carried out by the finance house Kuwait in the Middle East, South East Asia, Europe and the United States has helped in collecting more and more profits.
The finance house Kuwait house holds amazing endeavors for expanding its local branch connection and network. It has coverage of 52 branches along with special departments for women.
Finance house Kuwait has adopted the concept of the out-of-branch client. Moreover, this house is pioneer entity in using innovative technologies.
.It makes use of the SMS services, internet facility and phone service (Allo Baitak). The finance house Kuwait has actually received the top level of accreditation and certification from none other than the US Purdue University because this Kuwait finance house provides spellbinding customer service.
Every one of us is well aware of the fact that the finance house Kuwait is the largest Islamic bank in the whole Malaysia as far as capital is concerned. It holds total capital of US$650mil (RM2.13bil). When the analysts were consulted, they refused to respond or to even think about the movements of the bank. In the year 2009, the finance house Kuwait recorded a complete loss of RM30.9mil. All this happened because of the bigger allowances and stultification for losses in terms of finance of over RM184.7mil