Personal finance is the planning and managing personal financial activities (income generation, saving spending investing and protection). The important area of personal finance are income, spending, saving, tax, budget, retirement, insurance, investment and debt. Personal finance is summarised in personal/ family budget. It includes both personal or families financial activities such as salaries, rent, travelling, saving etc.
Why personal finance?
Personal finance helps to increase wealth even if you earn less. It can make you financially independent in less time. With proper planning of income you will not over spend this will lead to effective income management. Even with higher salaried people face debts because of lack of management of income. Personal finance lets you know your spendings and savings and keeps you away from debt. Personal finance also encourage you to invest which would also help to increase wealth. There are many apps and websites for personal finance where you can record your expenses, savings and income. This gives you to record and compare your present expenses with the previous one which would further help you to control you expenses.
Financial awareness campaign
Financial literacy is understanding and use of financial skill and knowledge to make financial decisions. One should have knowledge regarding personal finance management, budgeting and investing. The main motive of this campaign is to understand the financial awareness of personal finance.
It is noticed that financial literate people are more wealthier than those who are financial illiterate with higher salary.
Financial awareness helps you to manage financial activities more effectively. The ones with proper skills and knowledge are more likely to open there own business. Financial awareness of personal finance is prudent because if you are not managing your income it would lead to excess of expenses and which could also lead to more debts.