Personal Finance

What is Personal Finance?

Personal Finance is the process of managing your own finances, including income, savings, spending, and investments. The process of personal finance management involves budgeting, debt repayment, credit utilization, etc. Personal Finance depends on each person’s needs and goals to come up with an appropriate plan.

Example: Young people will often stop around 10%-30% of their total monthly financial income for retirement savings or for financial investment.

Importance of learning Personal Finance

• Make your life happier and more stable
• Form good savings habits
• Actively manage and be responsible for your assets
• Eliminate negative emotions affected by money
• Create a better personal financial management perspective for yourself and your family
• Not knowing how to manage personal finance will lead to uncontrolled debt, poor health, and even bankruptcy

Some great careers for those interested in Personal Finance:

• Accountant/Auditor
• Financial Analyst
• Credit Analyst
• Personal Financial Planners and Advisors
• Risk Specialist
• Actuary
• Investment Banker

Traits that are common in a good personal finance manager: A growth mindset

• Emotional Intelligence
• You should be patient
• Self-motivated

• How to balance your account: make sure the amount you spend does not exceed the amount that can be earned in a certain period of time
• Building a reserve fund: helps you make a plan to prepare financial backup in case of emergency such as illness, epidemic, …
• Manage due dates of bills: arrange payment due dates of bills to avoid late payment. Late bill payments will put your account in bad shape
• Avoid credit card balances: small spending on a credit card can quickly turn into a large sum in a few months if you don’t know how to manage their balance
• Saving for investment: learn how to use idle money to invest in a way that is reasonable with personal finances, manage risks if any
• Saving for retirement: there are many investment plans for retirement, you will spend years saving and using them in old age
• Choose a bank wisely: you should choose the right organization for your personal finance such as a traditional, online, or credit union
• Take advantage of credit bonus, check credit report

• How to spend reasonably but still fully with current personal finances
• Get rid of some of the financial risks
• How to build wealth from this income
• Tools to help you make the right spending decisions
• Make a plan, and understand the fundamentals when building a personal finance
• Build emergency funds, invest in retirement, read credit reports, and use credit smart

• Know what your personal financial goals are, and be aware of their importance
• Ability to analyze and objectively view items in personal financial management
• Logical thinking to make critical financial decisions
• Understand the basics knowledge of how to read financial statements

Personal Finance courses are available on many websites with a variety of prices. Fortunately, our website, Library of Trader, allows learners to access Personal Finance courses completely free of charge, with no time limit.