Personal Finance

refers to financial planning relative to the individual.  In general, the term relates to analyzing an individual's current financial status, budgeting, and planning for the future.  Although each individual can perform these tasks for himself or her self, they may solicit the help of a personal financial planner or personal financial advisor to assist.

Although some people use strategic financial palnning in order to save up for specific events or opportunities such as retirement or college, individuals may incorporate personal finance into their lives simply to gain control over their finances.

Personal financial planning usually consists of five general steps:

1. Assessing current financial status to determine income and debt as well as personal assets such as homes, cars, or other property.
2. Setting financial goals for short and long term benefits.
3. Planning the execution of these goals in detail in order to achieve them.  This usually consists of small, monthly or yearly steps.
4. Executing the goals and monitoring progress.
5. Reassessing the goals and achievements and making necessary adjustments.

Personal financial decisions may require payment for education, financing durable goods such as real estate and cars buying insurance, example health and property insurance, investing and saving for retirement.

Personal finance revolve around:

• How much money is needed by a person (or a family), and when?
• Where will this money come, and how?
• How to protect against unforeseen personal events, as well as in the external economy?
• How can family assets be best transferred across generations (requests and inheritance)?
• How does the tax policy (tax subsidies or penalties) affect personal financial decisisons?
• How does affect the individual financial capacity?
• How can you for a secure financial future in an environment of economic instability?

Personal financial decisions may also include payment for a loan or debt.

FinancialsRRK

website gives the information about Personal Finance.

Public Finance

is a part of financnce which covers around the central question of allocation of resources subjected to the budget constraint of the government of public entities.  Public sector finance tries to examine the effects and consequences of different types of taxation and  expenditures on the economic agents (individuals, institutuions, organizations, etc.) of the society and ultimately on the entire economy.  Public finance also analyzes the effectiveness of the policies aimed at certain objectives and consequently to the development of procedures and techniques for increasing the effectiveness of the policy.

Public Sector Finance mainly deal with proper allocation of resources with regards to the given budget constraint.

Public Finance generally deals with financial activities of the Government.  Both Public Fianance and Public Policy are important, as both are the main determinant in the policy matters of nation.

Financing of govenrment expenditures:

Govenrment expenditures are financed in two ways.

1. Government revenue

• Taxes
• Non-tax revenue(revenue from government-owned corporations, sovereign wealth funds, sales of assets, or Seigniorage)

    2.   Governement borrowing
     
           The issue of how taxes affect income distribution is closely related to tax incidence, which examines the distribution of tax burdens after market adjustments are taken into account.  Public finance research also analyzes effects of the various types of taxes and types of borrowing as well as administrative concerns, such as tax enforcement.

Taxes

Taxation is the central part of modern public finance.  Tax is a financial charge or other levy imposed on an individual or legal entity by a state or functional equivalent of a state.  It could also be imposed by a subnational entity.  Taxes consist of direct tax or indirect tax.

There various types of taxes broadly divided into two heads - direct and indirect tax:

• Stamp duty
• Excise tax
• Sales tax  (Value added tax (VAT), Services taxes)
• Road tax - Vehicle excise duty
• Gift tax
• Duties
• Corporate income tax on corporations
• Wealth tax
• Personal income tax

FiancialRRK

website gives the information about Finance.

FINANCIAL MARKET

FinancialsRRK

consisting the information about Financial Markets, Personal Finance, Public Finance, Banks and Banking etc.,

Finance

  is nothing but funds mangement.  In the workds the finance is business finance, personal finance, and public finance.  Finance deals with the key point of time, money, risk and how they are interrelated and how money is spent and budgeted.

Financial Market

is technique that allows to buy and sell financial securities those are stocks and bonds, commodities, and other fungible items of value at low transaction costs and how it effect the efficient-market hypothesis.  Financial markets facilitate  the raising of capital, the transfer of risk, International trade.

Types of financial markets:

Different kinds are there in financial markets.

• Capital markets, which consists 

              Stock markets:  Which provide financing through common stock or shares and enable subsequent trading thereof. -stock, preferred stock, common stock, registered share, voting share stock exchange.
               Bond markets:  Which provide financing through the bonds, fixed income, corporate bond, Government bond, Municipal bond, Bond valuation, High-yield debt, and enable the subsequent trading thereof.

• Commodity Markets, which facilitate the trading of commodities.
• Money Markets, which provide short term debt financing and investment.
• Derivatives markets, which provide instruments for the management of financial risk.
• Futures Markets, which provide standardized forward contracts for trading products at some future date.
• Insurance markets, which facilitate the redistribution of various risks.
• Foreign exchange market, which facilitate the trading of foreign exchange.