Personal Finance is a term used everyday by millions of people. The definition of personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. It seems simple but personal finance is probably one of the most complicated concepts people face as adults. It is an all encompassing term that is meant to signify the complete topic of ones money. To ensure a solid financial foundation it is important that individuals understand what all is involved in personal finance and which topics will apply to them. The following list - though not exhaustive - will provide some context as to what exactly personal finance involves:

  1. Personal finance planning
  2. Credit
  3. Insurance
  4. Investing
  5. Retirement planning
  6. Estate planning
This is a fairly straightforward list but each item can be broken down into significantly more detail. Personal financial planning entails concepts such as budgeting, understanding net worth and cash flow statements and creating a tax strategy. Credit is a large topic that includes credit cards, loans, lines of credit, mortgages and more. The world is said to revolve around credit. Understanding the utilizing credit can be powerful, but misusing it can be devastating from a financial point of view.

Even if you do not have any large assets insurance is another important and large topic. There are so many kinds of insurance it would not take long for someone new to it to get very confused. Life insurance, house insurance, car insurance, contents insurance, health insurance, disability insurance and more. This topic requires due consideration and it would be important to seek an experts help.

Retirement and estate planning are often left later than they should be. Most feel their companies or Government will take care of them, but taking the reins and planning for your own future is very important and not to mention rewarding. Time moves quickly and retirement sneaks up sooner than you think.

A certified financial planner should be well versed in all the above topics and be able to guide you down the path to success. Getting educated and preparing for your financial future can be overwhelming and very time consuming but nobody cares for your money and future as much as you do. Spend the time getting informed and use that knowledge to engage in discussions with a financial planner and success will be yours.

The world of personal finance is not one that is taught in school but more often learned from parents and other peers. This can be good in some cases and bad in others. It all depends on how well those you learn from manage their own finances. Take action and start planning for the future today.