Personal finance
Hello fear steem4nigerians and other fellow friends, it is a pleasure and a privilege to post in this community once again, today i would love to talk a topic known as.......
Personal finance
Definition of personal finance
Personal finance can be defined as person's or family income which is what they earn and how the money earned is applied on their expenses in a particular period of time. There are two ways to personal finance and they are income and expenses. Income is the cash which a person get from jobs, investment or business. Expense is the money spent.
Sources of personal finance
- Profit
- Wages
- Salary
- Interest
- Dividence
- Allowances
- Gratuity and pensions etc.
Now we have a sub-topic which is
Concept of consumption, choice scale of preference and budget
Consumption can be defined as the rate of goods and services purchased by people and are used to satisfy their needs. Consumption is an aspect of personal finance which is related to expenditure.
Choice is the decision a person makes among various options. It can also be defined as the act of selecting a particular want to be satisfied out of various choices.
Scale of preference is an organizing of individuals need in order of importance. Which means that the most important material should come before others.
Budget can be defined as an estimated value of income and expenses at a particular period of time. A budget is used for
- To setout how to live with ones earnings
- It shuns extravagant spending
- It enables people to know how they are financially
Modesty is a circumstance whereby a person lives within his or her earnings, without spending extravagantly. It is a quality of discipline when it comes to spending money. Some attributes if modesty are
- Living with ones earnings
- Prudence
- Contentment
- Simplicity
- Patience and morality
That is what i can write about personal finance, it is a very broad topic that is important in our daily life. Thanks to you all for reading my post in advance see y'all next time.