Tuesday, November 11, 2008

Your money........our advice

Personal Finance is your monetary decisions of to make your money worth. It's an idea on how you can save and make your money grow, apart from all your expenses. In this article, I'll discuss the ways in which you can budget, save and spent monetary resources, talking into account all financial risks and future life happenings.

We should keep an account of our income and expected expenditures to manage financial status. For money to grow, the best way out is to invest them. The rate of investment should be more than the rate of inflation in order to make profit. Investment should be done as early as you can and at regular intervals. And both for the long and short terms. In personal finance you can use your funds for the purchase of shares or any other collective investment plans. It can also be used for the buying of assets. You can invest on Real estate. Here your fund is invested to purchase property, which you can use for your personal purpose or rent out to make it a source of income. This investment is subject to capital profit or loss as the value of property may vary. Investments can be done in money market securities, mutual funds, common stocks, and bonds, direct public offering (DPO) and initial public offering (IPO). One should try not to get in bad debts. Also one should keep track of his credit report.

In the family, death of any earning member gives a severe financial shock. Such situations can be covered by opting for a life insurance policy. Also commodities like cars, houses..etc can be insured as their accident destruction can be a risk. In this way also you can manage your personal finances. We should plan taxes at the beginning of current year to avoid be burden by investment load. One can save taxes by investing in mutual funds. Investing in real estate can also be very much profitable.

1 comment:

nikki said...

Dear Friend,

I found the post to be quite interesting since now a days finance stands for status symbol,everyone has to manage it properly.Managing fiance is found to be more difficult then assembling it since we have to go for proper investment at the reght time, in a right way so as to get the right amount of return/interest on it.I hope if anyone can please suggest some ways of managing finances in such an inflationary economy.Inflation leds to rising prices, slow down of stock market then how can a middle income group can secure thier little amount of finances in the most effective way.