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What is personal finance?
Personal finance is the financial management which an individual or a family unit is required to do to obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.
Financial Planning Process
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An example to understand financial planning:
Rob wants to buy a car. First step he will go through his income and expenditures to figure out his net income. Second step after knowing how much he can spend on car he will choose a car. Third step Rob will decide weather to finance a car or lease it and pen down all the expenditures like monthly payment, insurance expense and maintenance expense. Fourth step will be purchasing a car according to the plans. Fifth step will be monitoring the plan.
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