Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

What is Personal Finance?


Are you ready to get a handle on your finances and prepare for your future? The first step is understanding personal finance.

According to Investopedia, “Personal finance defines all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning.” Understanding these terms can help you better control your funds and prepare for future financial success.

Important Personal Finance Terms

Budgeting — Establishing a budget is an important part of managing your personal finances. A budget helps you keep track of your spending patterns and plan how you are going to spend your income each month. Start by calculating your total monthly income, then create a spreadsheet that lists all of your expenses each month. This will help you see where your money is going, where you can save and where you can spend a little extra each month.

Insurance  — Purchasing insurance is another large part of managing your personal finances. According to Investopedia, by purchasing insurance — like health insurance, life insurance and car insurance and homeowner’s insurance — you are protecting yourself from risk and ensuring the security of your material standing.

Savings  — Whether you’re in your 20s and just starting to learn about personal finances, or are in your 30s and looking to better manage your funds, one thing is certain, you should be saving for the future. It is important to establish an emergency savings fund to cover any financial hardships and a retirement savings plan to help you in the future.

Articles on Personal Finance

For more information on personal finances, check out these articles from First Bank’s* Financial Education Center:


*Member FDIC.

———

Source:

Investopedia: http://www.investopedia.com/terms/p/personalfinance.asp#ixzz40uIYOSwU

Trending Topics

What is Personal Finance?

Are you ready to get a handle on your finances and prepare for your future? The first step is understanding personal finance. According to Investopedia, "Personal finance defines all financial decisions…

Is It Possible to Get a Mortgage Refinanced with No Closing Costs?

When it comes to refinancing a mortgage, you need to spend money to save money. Closing costs can amount to thousands of dollars, depending on the home loan. This is…

Personal Finance Articles & Advice | First Bank

Looking for advice on how to better manage your finances? First Bank's* collection of personal finance articles can help you with every aspect of managing your funds, from saving money to…

First Bank is One of the Top Banks in the U.S.A.

When searching for the top banks in the U.S., it is often smarter to work with a small community bank over a national bank like Wells Fargo or Bank of…

Mortgage Rates 101: Information You Should Know

Acquiring information about mortgage rates is a vital step in the home buying process. Mortgage rates vary based on several factors, such as the amount and type of your loan…

FHA Loans vs. Conventional Loans: How to Tell the Difference

Overwhelmed with the prospect of buying a home? FHA loans and conventional loans are likely two sources of financing that you’ve considered. Let First Bank help you understand these options…

What is Overdraft Protection?

According to Investopedia, an overdraft is "an extension of credit from a lending institution when an account reaches zero." An overdraft allows the individual to continue withdrawing money even if…

Jumbo Home Mortgage Loans

If you are thinking of buying a home with a higher property value and can handle larger monthly mortgage payments, a jumbo loan could be a suitable option for you.…

How To Make A Budget

The best way to save money and gain control over your finances is to make a budget. Follow these simple steps to make a budget that will save you money…

Open a Banking Account Online at First Bank

The ability to manage bank accounts online has provided us with financial freedom like never before. Consumers may now make payments, transfer funds or make deposits straight from a computer…