The 5 Rule Of Personal Finance

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15 September 2022

By : Quick Insurance Guru

Personal finance is a term that covers managing your money as well as saving and investing.

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It encompasses budgeting, banking, insurance, mortgages, investments, retirement planning, and tax and estate planning.

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The five areas of personal finance are income, saving, spending, investing, and protection.

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Knowing how to handle all of these should set you up to successfully manage your personal finances.

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Income

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Income is the starting point of personal finance. It is the entire amount of cash inflow then are to expenses, savings, investments, and protection.

Saving

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Savings is the income left over after spending. Everyone should aim for having savings, which means not using all income towards spending.

Investments

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Investing is the purchase of assets, usually stocks and bonds, to earn a return on the money invested.

Protection

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Protection refers to the methods that people take to protect themselves from unexpected events, such as illnesses or accidents, as well as wealth

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Saving money will always be more important than investing.

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The 5 Rule Of Personal Finance

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