We either spend with money we have or money we borrow, i.e., credit. Our credit card and tax payments also come under the term spending. Examples include paying bills, rent, mortgage, paying for a round of drinks with friends, shopping, filling our cars, buying presents, and making donations to charity. When it comes from work it is referred to as either a wage or a salary.” Spending “Income refers to money – cash or cash-equivalents – coming in either for work done, interest or profit from capital invested, or rent from a property or land that is let. In one of our previous articles, we defined income as follows: Salaries, hourly wages, commissions, pensions, gifts, dividends, government payouts, and bonuses are examples of some sources of income. Our income is money that we receive and then use to buy things, support our loved ones, pay bills, save, and invest. Let’s look at the five main areas of personal finance: 1. It encompasses budgeting, banking, insurance, mortgages, investments, retirement planning, and tax and estate planning.” Personal finance – five main areas “Personal finance is a term that covers managing your money as well as saving and investing. has the following definition of the term: Personal finance may refer to the whole area from the individual’s point of view or that of the sector that provides individuals and families with financial services. It is the financial management each person performs to spend, budget, save, and plan for retirement and other the future events. The term personal finance is all about how we, as individuals or families and not companies or organizations, manage our money, save, and invest.

Personal finances