This website uses cookies to ensure you have the best experience. Learn more

Personal Finance Essay

2521 words - 10 pages

1IntroductionWhether it is a personal loan, a mortgage, or in this circumstance, a credit finance for a vehicle, debt is an every day expense in which we all at some stage succumb to. With most necessities in life being out of most peoples price range, it is only through personal finance in which it makes it possible to afford some of life's requirements such as houses and cars.Dr Harry Zaphir, Professor of Business and business management recommended at a recent conference held at the Queensland University of Technology that the one tool in which to survive in business today is not to spend more money than you earn, and to only ever rely on "good" debt which can only increase in time (Dr Harry Zaphir, 2009). It is overwhelming debt which leads to bankruptcy, possibly resulting in for closure of assets until the sum of money owed is paid off which also leaves a bad credit rating next to your names ruining the chance of applying for future personal finance. With the help of a budget, we will make it possible for Sally to pay off a $4000 credit finance of a vehicle in the course of the next 2 years and recommend suitable avenues for her to invest her inheritance.2Personal FinancingPersonal finance as described by google define is "The application of the principles of finance to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events." Things such as savings accounts, investment schemes, insurance coverages and hospital benefits are all forms of personal finance to which people base monetary matters on.2.1Personal Financing - Loans vs. Credit CardsAs stated in the following paragraph, there are many ways in which to receive personal financing, but in particular we will be looking at personal loans and credit cards. A personal loan as described by, is "a loan that establishes consumer credit that is granted for personal use; usually unsecured and based on the borrower's integrity and ability to pay," whereas a credit card is "A card that entitles a person to make purchases on credit."2.2Advantages and Disadvantages of Credit Cards and LoansAs seen in APPENDIX A, there is a detailed description of the disadvantages and advantages of both credit card and personal loan finance. In observation, the credit card is a "buy now pay later" aspect of debt which is a lot more lenient as opposed to a personal loan which is a more safeguarded measure of credit that is both flexible and harder to obtain level of personal financing. The fault with credits cards are that it is a much easier way to dig yourself into debt, what with the freedom and ease to spend possibly more money than you earn as opposed to loans where it is on a predetermined amount.2.3Comparison between Credit Cards and Personal LoansWith credit cards, there is always the temptation to overspend as...

Find Another Essay On Personal Finance

Personal Finance Essay

612 words - 2 pages My educational goal is to complete university and become a computer engineer. My postsecondary education will cost a total of approximately $6,759.18. This will be a co-op education. The cost can be divided into three sections: Basic Tuition, Co-op fee, and incidental fee. The incidental fee includes student health insurance, student society fees, student endowment fund fees, and campus recreation fees. These are based on an 8-month school-year

Personal Statement: A Career in Finance and Economics

1257 words - 6 pages PERSONAL STATEMENT I always remember the moment that I was excited. The moment was that I awarded the 1st place and got the gold medal in the mathematics competition when I was a little girl in the 3rd grade. Since that time, I hadbegun to be attracted to the mathematics. I could not imagine my future without mathematics. It directed me to become a financial officer. My interest in financial management developed as a student at the Institute of

Personal Finance- A couple is planning for their future, in the event of death or loss of employment

1531 words - 6 pages policy is backed by the financial stability of the company that issued it.In conclusion, choosing a life insurance policy is a very personal matter. Each family's needs and preferences are a big part of the decision. A commission paid insurance sale agent can not make the best decision for the Wrights, only they can. Researching policies and insurance companies will give them the information they need. The choice should be a well informed one, but one that they alone can make.ReferencesWinger, B. & Frasca, R. (2006) Personal Finance Concepts - An Integrated Planning Approach,(7th Ed.) Prentice Hall, Upper Saddle River, NJ 07458

Specialization Paper on Finance

566 words - 2 pages handy when dealing with others. Acquiring as many mathematical skills as I can would also better myself with becoming successful in the area of Finance. Other strategies that would only benefit myself would be taking as many accounting classes as possible and gaining personal experience in sales. One looking into Finance should also have an interest in financial analysis and understanding financial structures.There are many career options in the

Business of Field

926 words - 4 pages the budget of the organization or investing in new areas within the organization and many others. Financial decisions are made not merely on sales figures but on the financial performance of the companies. The field of finance requires both analytical skills as well as personal judgment to determine the right option for a business organization. Finance helps the organization to meet its goals and objectives. Every organization looks to employee

How Personal Credit Affects Small Business Borrowing

570 words - 3 pages ’ use of personal guarantees and personal borrowing to finance business operations all link small business owners’ personal credit to their companies’ access to capital. Many, if not most, lenders will look at your personal credit score if you are a small business owner seeking a loan for your company. A 2006 report written for the U.S. Small Business Administration found ( that 71 percent of

Skills of First Year Financial Management Students in De La Salle Lipa

1281 words - 5 pages College students take a lot of time to successfully manage their personal finance. The ability to manage personal finances has become very important in our world today. Hira (2009) states that financial education is much demand in a wide range of entities including banking companies, government agencies and community interest groups, universities, schools and other organization. It measures the capacity of the individual on how to cope a problem

financial management as a profession

941 words - 4 pages business, as well as for their personal life.Finance is used by individuals (personal finance), by governments (public finance), by businesses (corporate finance), as well as by a wide variety of organizations including schools and non-profit organizations. In general, the goals of each of the above activities are achieved through the use of appropriate financial instruments, with consideration to their institutional setting. Finance is one of the

fm as a profession

882 words - 4 pages well as for their personal life.Finance is used by individuals (personal finance), by governments (public finance), by businesses (corporate finance), as well as by a wide variety of organizations including schools and non-profit organizations. In general, the goals of each of the above activities are achieved through the use of appropriate financial instruments, with consideration to their institutional setting. Finance is one of the most

Application for a Teaching Assistant in a Finance Program

583 words - 3 pages Interests My interest is simply that I want to teach any of the multiple facets of Finance and Accounting. My interest in Finance includes broad range of fields such as corporate finance, international finance, financial markets, money and banking, risk management and financial derivatives, portfolio management, and investment planning. Beside my strong interests in theoretical aspect of finance, I am particularly interested in application of

The Traditional Approach to Capital Structure

1201 words - 5 pages The traditional approach to capital structure The traditional approach stresses the benefits of using the combination of cheaper debt and equity finance to find the optimal capital structure, so the total value of firms will be increased with the sensible debt. (Watson and Head, 2013) Of cause, the model was created which based on a certain assumption 1) There is no tax at a personal or a corporate level. 2) The perpetual debt finance and

Similar Essays

Personal Finance Essay

4082 words - 16 pages Q 1 Andrew and Jean have been considering a low-cost endowment mortgage. Briefly explain the problems inherent in such mortgages.According to Yahoo Finance low-cost endowment mortgage is the most usual form of endowment used to repay a mortgage. It provides life cover, which would pay off the mortgage if the policyholder dies. As long as investment assumptions are met the endowment should provide a lump sum sufficient to repay the mortgage at

Personal Finance And Investing Essay

4523 words - 18 pages preparation of this report. The intent of this financial report is to investigate the personal finance and relevant investment options regarding Sally's information; also additional options available for any savings.With quite a few necessities in life being out of most persons price range, it is only through personal finance and investment in which it makes it possible to afford some of life's requirements. The personal finance, relevant investment and

Personal Statement Accounting And Finance Essay

420 words - 2 pages Personal StatementWith the character of composure, steadiness and fortitude, I never give up. During middle school, I wasn't deeply attracted to accountancy until having read the book Corporate Finance written by Stephen A. Ross. It brought me to a completely new world with many different ways and modes of thinking, making me feel wonders of the major's macro-function and micro-details. Consequently, my damnedest and savvy sent me to the

Mint.Com, My Favorite Personal Finance Tool

1169 words - 5 pages of personal finance classes should be a part of a high school education. In these tough economic times, I’ve learned that having a handle on our personal finances is not a luxury – it’s a requirement. Therefore, making money while effectively managing and tracking how you spend it is closely related to stress levels and living a comfortable life. Using is a great tool I use in keeping control of my personal finances. I learned of