What is the scope of personal finance(ge ren li cai de fan wei you na xie )

Financial management can be said to focus on the word "money". We use "money" to express the scope of financial management, which can be summarized as: making money, using money, saving money, borrowing money, saving money and protecting money.

(1) Making money: making money is income. Income includes work income and financial income. Work income is to make money by people. Work income includes salary, commission, work bonus, self employment income, etc. Financial income is to make money with money, including interest income, rent income, dividends, capital gains, etc.

(2) Using money: using money means spending. Expenses include living expenses and financial expenses. Living expenses include clothing, food, housing, transportation, education, entertainment, medical and other family expenses. Financial expenditure includes loan interest expenditure, insurance premium expenditure, investment fees and so on.

(3) Saving: saving refers to assets. When the current income is greater than the expenditure, savings are generated, and the accumulated savings are assets. These are the principal that can help you generate investment income.

(4) Borrowing money: borrowing money means being in debt. When the cash income is less than the cash expenditure, there will be the behavior of borrowing money. There are mainly: consumption liabilities, investment liabilities, self use assets and liabilities.

(5) Saving money: saving money means saving taxes. Income is taxed in addition to expenditure. How to legally save gift tax or inheritance tax has become an important part of financial management.

(6) Money Protection: money protection refers to insurance and trust. The main methods are: make insurance or trust arrangements in advance, so that human resources or existing property can be protected, or when there is a loss, you can get financial management to make up for the loss.

Chinese PinYin : Ge Ren Li Cai De Fan Wei You Na Xie