Personal Finance New Zealand

Personal Finance NZ

To begin with, personal finance is the submission of the principles of finance to the monetary decision of an individual or family as a whole. In simple terms, it is defined as all financial decisions and activities of an individual for example, budgeting, savings, insurance, debt servicing. To be a more precise, it is the way in which individual or families acquires, saves, budgets, and spends monetary resources over time taking into consideration various financial risks and future life events.

Personal Finance Tips

Some personal finance tips would include :

Paying one-self first: this means trying and putting aside money or some percentage of wages into savings

Pay bills on time: paying bills on time will save up one paying for reconnection and avoiding late payment fees which would have been saved if paid on time

Set a Budget: setting a budget would be helpful as it would guide one to abide by the expenses estimated

 Be patient: this is mostly in relation to impulsive buy. For example, buying a new gadget as the gadget is released into the market would be expensive therefore, one could wait a month or so to let the price of the gadget fall and then purchase the same gadget

Insure oneself against financial ruin: insuring would save an individual’s medical bill preventing bankruptcy or money loss

Do not invest in a stock that a person does not know about.

The above is just some tips one can follow to get money life on the right track and wise up on some of the challenges of money management

Components of personal finance include:

  • Credit cards
  • Personal loans
  • Investment
  • Retirement plan
  • Income tax management
  • Social benefits
  • Savings accounts