What is personal finance definition?

Personal finance is the way an individual or household earns, spends, saves, borrows, protects and invests money. It includes budgeting, banking, credit, debt repayment, insurance, taxes, investing, retirement planning and financial goal-setting. In practical terms, personal finance connects your resources to your priorities: what comes in, what must go out, what should be protected and what can be saved for later. A useful personal-finance system is simple enough to maintain and flexible enough to change when income, family needs or goals change.

Practical takeaway

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