Sample Essay

Word length approx: 1805 words

2 works cited

Every individual and every family owns some form of assets. The way in which these assets are managed is known as personal finance. Effectively managing assets which are in the possession of a family or a separate individual refers to personal finance.

In personal finance, attention must be given to how income is generated for the household and whatever income might be earned, it should be allotted in a manner that it covers the expenses of the home. The finance should also be dealt in a way that enough cash is kept as a reserve in the form of financial security for the home.

The main task involved in personal finance is the fact that an individual must be aware of the income coming into the home. The income can be in the form of a monthly salary or in the form of weekly wages from a job. However, income from other sources can also be counted in personal finance. Other income sources which can qualify as being personal finance are any returns which are received from investments, child support payment, and even alimony; all constitute as being part of personal finance as all are a source of income.

The expenses in the home can either be fixed or variable. When dealing with personal finance, it must be taken into account exactly what these various expenses are within the household. Fixed expenses generally include rent or mortgage…

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