1 Personal Financial Is A Process
1. Personal financial is a process that properly manage your financial tools and even achieve your financial goals prudently. In general, It has 5 components Which include accessing your financial goals carefully, setting your financial goals , identify the plan which is available to you and monitoring and re-accessing your plan
2. Of course, there are too many factors easily affecting our personal financial decision. And we can divide the situation into two aspect, which are economic aspect and personal aspect.
Economically,
1) if government increase money supply at monetary market, the market interest rate will increase , which will affect your financial planning.
2) Government increasing tax rate , providing effective incentives for people to postpone consumption
3) Your employment statues
4) Inflation rate
Personally,
1) In coordination with your immediate goals,
Consumer product goals , intangible-purchase goals , which aims to buy for reputation goods .
3. Honest to say ,we will encounter some risk when we do the personal financial decision . For instance,
Economically
1) Currency Risk , Currency or exchange rate risk is a form of risk that arises from the change in price of one currency against another. The constant fluctuations in the foreign currency
2) Interest rate risk , Interest rate risk is the possibility that a fixed-rate debt instrument will decline in value as a result of a rise in interest rates.
3) Inflation Risk
Also known as purchasing power risk, inflationary risk is the chance that the value of an asset or income will be eroded as inflation shrinks the value of a country's currency. Put another way, it is the risk that future inflation will cause the purchasing power of cash flow from an investment to decline.
Personally ,,
Self-Income risk,
The ways that evaluated and minimized to reduce and financial difficulties
1) Get greater financial information , as well as financial planning source
2) Evaluate all your financial decision
2. Of course, there are too many factors easily affecting our personal financial decision. And we can divide the situation into two aspect, which are economic aspect and personal aspect.
Economically,
1) if government increase money supply at monetary market, the market interest rate will increase , which will affect your financial planning.
2) Government increasing tax rate , providing effective incentives for people to postpone consumption
3) Your employment statues
4) Inflation rate
Personally,
1) In coordination with your immediate goals,
Consumer product goals , intangible-purchase goals , which aims to buy for reputation goods .
3. Honest to say ,we will encounter some risk when we do the personal financial decision . For instance,
Economically
1) Currency Risk , Currency or exchange rate risk is a form of risk that arises from the change in price of one currency against another. The constant fluctuations in the foreign currency
2) Interest rate risk , Interest rate risk is the possibility that a fixed-rate debt instrument will decline in value as a result of a rise in interest rates.
3) Inflation Risk
Also known as purchasing power risk, inflationary risk is the chance that the value of an asset or income will be eroded as inflation shrinks the value of a country's currency. Put another way, it is the risk that future inflation will cause the purchasing power of cash flow from an investment to decline.
Personally ,,
Self-Income risk,
The ways that evaluated and minimized to reduce and financial difficulties
1) Get greater financial information , as well as financial planning source
2) Evaluate all your financial decision