MANAGING PERSONAL FINANCE IN contemporary world
In modern world we meet the term personal finance practically every day. But what does personal finance mean? It 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. Nowadays people manage their personal finance with the help of banks, financial institutions that provide banking and other financial services.
The name bank derives from the Italian word banco ...view middle of the document...
First of all every month you receive a monthly statement from the credit card company which include billing date (the date the statement was prepared), the balance (the amount you owe) and the due date (the date by which you must pay). But you may pay a part of the balance and owe the rest, then you will incur a finance charge.
Management of personal finance implies an individual's ability to effectively utilize
personal fund to provide for his or her needs. Human needs are insatiable and therefore effective management of the available financial resources is essential to take care of priority needs. I support Asaolu and Nassar’s point of view as to the management of personal finance. They said that it should involve the following:
• Planning: Individuals should be able to formulate policies and develop financial plans for the distant future.
• Organizing: Individuals should keep track of the financial implications of the various activities they are embarking upon. They should be able to keep abreast of the development within and outside their environment and take advantage of its strength and opportunities.
• Decision making: Based on the analysis of relevant costs, presentation of quantitative data,...