Question

Thinking about what you already know about finance, how does finance impact your personal life?

Answer 1

Answer:

Finance- It is a study of identifying, raising, managing and controlling the finance. Finance is very important is business as well as in our personal life. Finance is a management of money and it includes investing, financing, lending, borrowing, saving and forecasting activities.

Finance is very wide. It provides funds to business and business runs with that fund, business does further investment and expansion with the help of finance. Finance helps business to earn profit. Finance manages money in such a way so that money produces return. Finance has its own streams that are as following:

1. Financial management
2. Management accounting
3. Financial analysis
4. Investment management
5. Financial economics and engineering

Finance in personal life- Finance is very helpful in personal life as well. We take financial decisions based on the money, we have. We take loan from bank to build our house, we pay interest on it. We do out investment to get the higher return and minimize risk. We make monthly budgets to control the expenditures. Financial planning is very important in our day to day life. We become financially independent and can save for our retirement and old age if we manage the finance in well manner.