Definition: “Personal finance is a science that deals with with the income and expenditure of public bodies and the Government of a nation.”
Personal finance is a science as well as an art. It is a science because we study in it various principles, problems and policies.”Personal Finance Advice is the study of the principle underlying the spending and raising of income by personal.”
The Scope of personal finance advice includes the following four types activities:
- Personal Revenue:In this part of personal finance advice, we study the various sources from which the person collects revenues.
- Personal finance Expenditure: In order to perform the various functions,the person incurs expenditure out of the revenues collected by the personal finance from the different sources.
- Personal finance advice of Debt: The person borrow money from different sources when the expenditure excess than income.
- Personal financial advice of Administration: In this branch of personal finance advice the person study how the person controls their financial operations.
Importance of personal finance advice: In olden days it was not so important. The personal finance in those days did not intervene in their economic activities. But in Modern world every person ensure “Self Welfare”to their families. The scope of personal finance advice has been increasing day by day.
The importance of personal finance advice:
- Protection to personal finance
- Planned economic growth of persona finance
- To regulate personal Consumption Habits.
- Maintaining balance of personal finance.Maximum social advantage is the best principle of personal finance advice.
Personal expenditure creates utility for those who are benefited by it. This is known as social benefit of personal expenditure. Every personal finance tries to adjust his expenditure according to his income. Every personal finance advice determines his income and then tries to spend it according to his needs. Every personal finance advice first estimates its expenditure and then tries to adjust its income.