Personal Finance

AAA

DEFINITION of 'Personal Finance'

All financial decisions and activities of an individual, this could include budgeting, insurance, savings, investing, debt servicing, mortgages and more. Financial planning generally involves analyzing your current financial position and predicting short-term and long-term needs.

INVESTOPEDIA EXPLAINS 'Personal Finance'

Personal finance looks at how your money and future is managed. Often individuals will seek advice from financial planners, but the use of software or websites is also an option. For example personal finance would include monitoring your spending, budgeting for an emergency fund, and paying down debt.

RELATED TERMS
  1. Savings Rate

    The amount of money, expressed as a percentage or ratio, that ...
  2. Breakeven Tax Rate

    A rate of tax above which it is unprofitable to engage in a transaction. ...
  3. Open-Market Rate

    Rate of interest that is paid on any debt security that trades ...
  4. Financial Planner

    A qualified investment professional who helps individuals and ...
  5. Personal Income

    Total compensation received by an individual. Personal income ...
  6. Budget

    An estimation of the revenue and expenses over a specified future ...
Related Articles
  1. Bloated Budget? How To Trim The Fat
    Options & Futures

    Bloated Budget? How To Trim The Fat

  2. 5 Ways To Double Your Investment
    Investing Basics

    5 Ways To Double Your Investment

  3. Are You Living Too Close To The Edge?
    Budgeting

    Are You Living Too Close To The Edge?

  4. How An Allowance Helps Kids Get Money-Smart
    Budgeting

    How An Allowance Helps Kids Get Money-Smart

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center