Introduction to Personal
Introduction to Personal
Finance
Finance
Spend Less to Save More
•Consume less to be able to save.
•Part of saving needs to be invested.
•Investments help us to grow our wealth.
Financial Success and
Happiness
•Financial success is the achievement of financial aspirations.
•Financial security is living comfortably.
•Financial happiness is satisfaction with
Business (Economic) Cycle
•It is a process by which the economy grows and contracts over time.
•It repeats continuously.
•It consists of various conditions such as
Economic Indicator
•Procyclic Indicator, ex: GDP.
•Countercyclic Indicator, ex:
unemployment rate.
Inflation, Prices, and Interest
Rates
•Inflation is the increase in overall level of prices.
•Inflation erodes purchasing power.
•Inflation affects interest rates positively.