What is Finance?
Any activity that is associated with banking, leverage, credit, money, investments and capital markets is called Finance. Money management and acquisition of funds are the most important aspects of finance. Personal Finance, Public Finance and Corporate finance are the three sub categories of Finance. Financial planning is one aspect that is required for every human being in the world. One should always be conscious about income and expenditure as this is the key to financial planning.
Personal Finance – A person’s earnings is very important with respect to implementation of strategies in personal finance. A person should be aware of his/her desires, long term plans and the standard of living .Saving for retirement is an important aspect of personal finance. The prudent method of saving is to forget 20 percent of monthly income. This can be invested as deposits, gold, shares or saving up to purchase a piece of land.
Public Finance – Tax, budgeting and debt insurance are important aspects of Public Finance. A government should have both short term and long term goals to achieve excellence in Public Finance.
Corporate Finance – Financial activities with respect to running a company, corporation or an organization falls under Corporation Finance. A company has to decide how to invest, where to invest and what to invest. Cost cutting is important to the growth of a company.