Personal finance is the process of planning and managing your personal financial affairs. It involves all aspects of your financial life, including saving, investing, spending, banking, insurance, mortgages, investments, retirement, tax, and estate planning.
Understanding the concept is essential because it helps you make smart decisions with your money. It gives you a roadmap to financial security and freedom.
Without a solid understanding of personal finance, you may find yourself making poor choices with your money that can have long-term consequences. For example, you may end up carrying too much debt, or not saving enough for retirement.
Ultimately, personal finance helps you prepare for life's unexpected events, such as job loss, illness, or disability.
In this article, True Tamplin, the author, discusses the different aspects of personal finance in detail and provide some tips on how to manage your finances effectively.