What is finance ?
Finance is the most important aspect of our life because it plays a important role to improving the individual life in their different type of situation which is may be good or bad it depends only upon the condition. The requirement of finance is necessary for meeting the requirements such as establishing a new business or for running a existing business or for any personal criteria .
But before meeting these type of needs or requirement the management of this type of finance is mandatory because In case when you don’t prepare the proper budget regarding your prospective it leads to overspending or misuse of the borrowed amount. So you have to make the proper management or budget from your brilliant mind.
What is financial planning ?
Financial Planning refers to that type of systematic process or planning which includes the evaluation the current situation or condition of a business or different sectors for making the bridge to reach at the destination of your future financial goals. It includes various types of experiment and observation which are beneficial for your corporate sector growth and expansion.
As we have observed the following pie charts showing that there are the various type of important sectors which need to boost your standard of living
- PROTECTION – The term secure is also important for an individual to grab various types of life insurance policies to various tpes of circumstances. the life insurance offers a tax free income when you face the uncertainty in your life.
- INVESTMENT – It refers to that increase in the initial amount which you are putting in the assets of the respective field there are many sectors which you can invest your money for the future profits Such as-bonds ,stocks and more.
- SAVINGS – Savings refers to the part which is remain after all the expenses which you have paid for the motive of livelihood. It also plays a major role in your professional life when you are out of funds or in any type of money problem.
