What is Personal Finance?

Personal Finance Definition

The main tasks for personal finances are to help people get the right financial education, reduce unnecessary expenses, increase return on investment, manage money responsibly, and learn how to plan and correctly make complex and large purchases.

Personal Finance Statements

plan/actual table
Example of personal income statement

Analyzing personal income statement banks can determine a client’s financial position and measure the risks associated with a loan. This report can be simple and contain data for a specific period, or it can be extended with the time intervals and plan/actual analysis.

Balance sheet example
Example of personal balance sheet

Personal Finance and Investing

Personal Finance Software

Managing personal finance is a diligent mathematic job with numbers. For many years people were using simple tools, such as the abacus, pen, and paper. Then abacus has been replaced by electronic calculators. But real changes in finance management have occurred since the beginning of the use of PCs and Macs. Efficiency, speed, and accuracy of calculations have increased many times. But financial software has been and remains focused primarily on the corporate sector. Many programs are not suitable for personal use and quite expensive. The most popular and affordable personal finance software today is Excel. However, this program is not that simple and requires special training.

Excel spreadsheet
Example of personal finance software
personal finance app
Example of personal finance app