Finance studies and manages money, investments, and financial systems. It involves fund allocation, capital acquisition, and resource management to achieve financial goals. It is divided into three main areas: Personal Finance, Corporate Finance, and Public Finance. Personal finance manages income, expenses, and debts, while corporate finance raises capital and manages company resources. Public finance focuses on government entities’ financial management, including taxation, spending, budgeting, and debt management. Effective financial strategies include budgeting, saving, investing, debt management, diversification, emergency funds, tax planning, risk management, retirement planning, cash flow management, and credit management.
Financial Management Types
Personal finance: Managing assets, securities, stocks, bonds, and real estate to grow wealth.
Corporate finance: Managing public finances, including budgeting, saving, investing, retirement planning, taxes, insurance, government spending, taxation, and national/regional financial policies.
Behavioral finance: Studying psychological influences on financial decision-making.
International finance: Dealing with global financial management, including currency exchange, foreign investments, and international trade.
Hema, 12:09 AM