1. PERSONAL FINANCE! BY :JAQUELINE ESPINOSA

2. WHAT IS PERSONAL FINANCE?? PERSONAL FINANCE DEFINES ALL FINANCIAL DECISIONS AND ACTIVITIES OF AN INDIVIDUAL OR HOUSEHOLD, INCLUDING BUDGETING, INSURANCE, MORTGAGE PLANNING, SAVINGS AND RETIREMENT PLANNING.

3. BREAKING DOWN PERSONAL FINANCE. ALL INDIVIDUAL FINANCIAL ACTIVITIES FALL UNDER THE PURVIEW OF PERSONAL FINANCE; PERSONAL FINANCIAL PLANNING,GENERALLY INVOLVES ANALYZING YOUR CURRENT FINANCIAL POSITION, PREDICTING SHORT-TERM AND LONG-TERM NEEDS AND EXECUTING A PLAN TO FULFILL THOSE NEED WITHIN INDIVIDUAL FINANCIAL CONSTRAINTS. PERSONAL FINANCE IS A VERY INDIVIDUAL ACTIVITY THAT DEPENDS LARGELY ON ONE'S EARNINGS, LIVING REQUIREMENTS AND INDIVIDUAL GOALS AND DESIRES.

4. MOST IMPORTANT ASPECTS OF PERSONAL FINANCE. ASSESSING YOUR CURRENT FINANCIAL POSITION - LOOKING AT EXPECTED CASH FLOW, CURRENT SAVINGS, ETC. BUYING INSURANCE TO PROTECT YOURSELF FROM RISK AND MAKING SURE YOUR MATERIAL STANDING IS SECURE CALCULATING AND FILING TAXES SAVINGS AND INVESTMENT RETIREMENT PLANNING

5. BUDGETING A BUDGET IS A PLAN FOR YOUR FUTURE INCOME AND EXPENDITURES THAT YOU CAN USE AS A GUIDELINE FOR SPENDING AND SAVING. ALTHOUGH MANY AMERICANS ALREADY USE A BUDGET TO PLAN THEIR SPENDING, THE MAJORITY OF AMERICANS ALSO ROUTINELY SPEND MORE THAN THEY CAN AFFORD. THE KEY TO SPENDING WITHIN YOUR MEANS IS TO KNOW YOUR EXPENSES AND TO SPEND LESS THAN YOU MAKE. A GOOD MONTHLY BUDGET CAN HELP ENSURE YOU PAY YOUR BILLS ON TIME, HAVE FUNDS TO COVER UNEXPECTED EMERGENCIES, AND REACH YOUR FINANCIAL GOALS.

6. INSURANCE INSURANCE IS A CONTRACT (POLICY) IN WHICH AN INDIVIDUAL OR ENTITY RECEIVES FINANCIAL PROTECTION OR REIMBURSEMENT AGAINST LOSSES FROM AN INSURANCE COMPANY. THE COMPANY POOLS CLIENTS' RISKS TO MAKE PAYMENTS MORE AFFORDABLE FOR THE INSURED.

7. MORTGAGE PLANNING A MORTGAGE IS A DEBT INSTRUMENT, SECURED BY THE COLLATERAL OF SPECIFIED REAL ESTATE PROPERTY, THAT THE BORROWER IS OBLIGED TO PAY BACK WITH A PREDETERMINED SET OF PAYMENTS. MORTGAGES ARE USED BY INDIVIDUALS AND BUSINESSES TO MAKE LARGE REAL ESTATE PURCHASE WITHOUT PAYING THE ENTIRE VALUE OF THE PURCHASE UP FRONT. OVER A PERIOD OF MANY YEARS, THE BORROWER REPAYS THE LOAN, PLUS INTEREST, UNTIL HE/SHE EVENTUALLY OWNS THE PROPERTY FREE AND CLEAR. MORTGAGES ARE ALSO KNOWN AS "LIENS AGAINST PROPERTY" OR "CLAIMS ON PROPERTY." IF THE BORROWER STOPS PAYING THE MORTGAGE, THE BANK CAN FORECLOSE.

8. SAVINGS SAVINGS, CONSIST OF THE AMOUNT LEFT OVER WHEN THE COST OF A PERSON'S CONSUMER EXPENDITURE IS SUBTRACTED FROM THE AMOUNT OF DISPOSABLE INCOME THAT HE OR SHE EARNS IN A GIVEN PERIOD OF TIME.

9. RETIREMENT WHEN A PERSON CHOOSES TO LEAVE THE WORKFORCE. THE CONCEPT OF FULL RETIREMENT – BEING ABLE TO PERMANENTLY LEAVE THE WORKFORCE IN OLD AGE – IS RELATIVELY NEW, AND FOR THE MOST PART ONLY CULTURALLY-WIDESPREAD IN FIRST-WORLD COUNTRIES. MANY DEVELOPED COUNTRIES HAVE SOME TYPE OF NATIONAL PENSION OR BENEFITS SYSTEM (I.E. THE UNITED STATES' SOCIAL SECURITY SYSTEM) TO HELP SUPPLEMENT RETIREES' INCOMES.