Finance can be defined as the science of money management. It deals with the allocation of assets as well as liabilities under conditions of uncertainty or certainty. Time value of money is an aspect of finance. It states that the purchasing power of one unit of a certain currency is dictated by time. Finance can be divided into private, corporate and public finance. Before we focus on the three subcategories, let’s focus on Brian Bonar.
About Brian Bonar
Brian Bonar has served as the director of the Dalrada Financial Corporation since 1995. He became the chairperson of the board of directors in 1999. He has also served in other positions in the corporation. For instance, he worked as the Director of Technology Sales from August 1992 to April 1994. Brian Bonar has also worked in other companies, for example, he was employed by IBM, U.K Ltd. for almost seventeen years.
Personal finance involves paying for durable goods, education, saving for retirement, investing, and buying insurance. It may as well entail serving loans and debts. Personal financial planning may involve some of the following:
Financial position. It involves understating one’s resources by evaluating the net worth as well as household cash flow. The net worth of an individual entails balancing a balance sheet containing assets and liabilities.
Adequate protection. Adequate protection is the analysis of how to protect the unforeseen risks. The risks may be divided into disability, liability, death, property and health. Some of these perils are self-insurable while some will necessitate the purchase of an insurance policy.
Tax planning. Paying tax is an expense in every household’s balance sheet. Managing taxes goes beyond whether or not a person will pay but how, when and how much. Government incentives such as tax deductions go a long way in reducing the tax burden.
Investment. Most people consider financial planning to be the act of accumulating enough money for large purchases. The intentions of accumulating assets are, starting a business, saving for retirement, buying a car or a house and paying for education outflows.
Retirement planning. It entails understanding the cost of living in retirement and how to distribute assets to meet income shortfall. Retirement planning methods include taking advantage of existing government, employer, and personal structures.
Corporate finance envelops sources of funding and capital structures of a corporation. Above all, it is concerned with steps the managers take to increase the net worth of the firm.
It describes finance related to sovereign states, sub-national entities, and related public entities such as schools and hospitals.