Personal Finance
Personal Finance Personal finance is a subject that revolves around your finances as an individual. Unlike corporate finance, personal finance is controlled or affected by human behavior and management of finances in this level is governed solely by personal discipline. It is worth mentioning that good personal finance management results to savings and investments. To effectively manage personal finances, one needs to understand the very basic accounting and finance concepts including treatment of below items. Income. Costing and expenses. Budgeting Time value of money. 1. Income/revenue Income is money earned or inflows from employment, business etc. It is prudent to master your revenue streams and have in mind your average income within a certain time frame. This enables to you understand your financial capability as to what tune of financial planning you can adopt. On employment income it is worth mentioning that there is gross income and net income. Gross is the total income b...