Oct 08, 2016 01:02 PM
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We need to earn, cut cost, save money and invest and maximizes wealth. The global recession had made lots of changes in everyone’s life due to high inflation, falling money value with changes in buying habit, saving patterns, stagnant income etc. We need better plan to equip all these. Personal finance defines all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning. Market theory and practice is largely guided by assuming the presence of the invisible hand: the idea that all consumers in a market economy will act rationally, or in their own self-interest. In theory, this makes market fluctuations predictable and provides assurance that their movements have been in the interest of the consumer. However, scholars in the late twentieth and early twenty-first centuries began to question that assumption, arguing that consumers actually act irrationally as a result of under-education in a more complicated and less comprehensible economy. Many consumers simply do not have the information to make the most rational financial decisions for themselves, or they are manipulated by circumstance or misinformation to perceive a decision as being more rational than it actually is. As such, many colleges and universities have begun to offer personal finance courses, and almost all media publications regularly produce material doling out personal finance advice to consumers. Matters of personal finance include, but are not limited to, the purchasing of financial products for personal reasons, like credit cards, life and home insurance, mortgages and retirement products. Personal banking is also considered a part of personal finance, including checking and savings accounts and new, 21st century banking products like Venmo.
Personal finance is recent development and it was taught in universities and schools since early 20th century. It was initially disregarded by male economists, as "home economics" and more recently economists stressed need of personal finance education. Personal finance defines all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning.
Market theory and practice is largely guided by assuming the presence of the invisible hand: the idea that all consumers in a market economy will act rationally, or in their own self-interest. In theory, this makes market fluctuations predictable and provides assurance that their movements have been in the interest of the consumer. However, scholars in the late twentieth and early twenty-first centuries began to question that assumption, arguing that consumers actually act irrationally as a result of under-education in a more complicated and less comprehensible economy. Many consumers simply do not have the information to make the most rational financial decisions for themselves, or they are manipulated by circumstance or misinformation to perceive a decision as being more rational than it actually is. As such, many colleges and universities have begun to offer personal finance courses, and almost all media publications regularly produce material doling out personal finance advice to consumers. Matters of personal finance include, but are not limited to, the purchasing of financial products for personal reasons, like credit cards, life and home insurance, mortgages and retirement products. Personal banking is also considered a part of personal finance, including checking and savings accounts and new, 21st century banking products like Venmo.
Personal finance is recent development and it was taught in universities and schools since early 20th century. It was initially disregarded by male economists, as "home economics" and more recently economists stressed need of personal finance education.
Why we need to get service from investment advisor/financial analyst.
India has moved a long way from the closed economic model as its been exactly 25 years since the country embraced financial reforms and opened up for globalization.
• Sound personal financial planning and wealth management have become key to achieve long term life goals life such as house, cars, education, personal wellness etc.
• People are living longer and living better due to access to sophisticated medical care, awareness towards health and a general sense of well-being.
• Aspirations have also increased a lot and with new avenues opening up for investments every now and then, it is critical to be abreast of latest developments in finance and economy.
• The continued spree of free market reforms clubbed with the internet revolution has altered the work environment, nature and duration of jobs and triggered plenty of lifestyle changes as well.
• Deciding well in advance about your life goals, keeping a close watch on discretionary expenses and managing your investments with an active interest are critical.
Former Federal Reserve Chairman Ben Bernanke said that “Financial education supports not only individual well-being, but also the economic health of the nation. Consumers who can make informed decisions about financial products and services not only serve their own best interests, but collectively, they also help promote broader economic stability.”
An advisory service helps:
• Income management
• Increase the cash flow
• Family security
• Increase savings, investment
• Improve standard of living
• Better financial understanding & assets building
• Achieve financial goals
