Personal Finance

710 Words2 Pages

Financial advisers typically provide customers with financial products and services, depending on the licenses they hold and the training they have had. An understanding of personal finance may guild individuals in pursuing a career as a financial adviser. Most of the people are lack in understanding of personal finance or are not interested in making their own financial decisions therefore financial advisers are in demand. Nowadays, a single course of personal finance is low cost and insufficient to start a career as a financial adviser, it may help in taking additional courses to obtain the necessary qualifications. For example, an agent of insurances is qualified to sell both life insurance and variable annuities. However, A broker can …show more content…

It also planned the sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. The first step in budget planning is to evaluate the current financial position by assessing the total income, expenses, assets and liabilities of individuals. The net income is the amount of Gross Profit minus expenditure. It can measure the wealth by the amount of net income. As the saving move on, it will increase in an assets, therefore the net income will increase as well. Budget planning enables every individual to build their own net income by setting aside part of total income it is easy to clarify whether they need to either invest in additional assets or reduce their liabilities. As for tax planning, the income tax is one of the largest expenses in a household. Managing the tax rates is not an easy question whether or not taxes will be paid. The government gives many incentives in the form of tax deductions and credits, however it can be used to lower the lifetime tax burden. Governments often use a progressive tax as an individual's income grows, the higher marginal rate of tax the higher tax must be paid. An individual must understanding how to take advantage of the myriad tax breaks when planning a personal finances which can help an

More about Personal Finance

Open Document