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Emergency Fund
An emergency fund, also known as contingency fund, is a personal budget set aside as a financial safety net for future mishaps or unexpected expenses. A critical part of financial planning, it is supposed to ensure one's personal finances are prepared for any emergency so that the risks of becoming dependent on credit, falling into debt, or running out of money in general are reduced if such a situation were to occur. Emergency funds may be used in the case of job loss, medical emergencies, automobile problems, home appliance repairs/replacements and unplanned travel expenses. Saving The recommended amount of money to be allocated into an emergency fund depends on one's personal financial or economic situation. Generally, an adequate fund tends to cover six months' worth of expenses or more. In early adulthood, it is generally accepted one should save $500. An emergency fund includes all the basic expenses like house rent, grocery expenses, electricity bills, phone bills, etc. It ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Personal Budget
A personal budget (for the budget of one person) or household budget (for the budget of one or more person living in the same dwelling) is a plan for the coordination of the resources (income) and expenses of an individual or a household. Purposes of creating a personal budget Personal budgets are usually created to help an individual or a household of people to control their spending and achieve their financial goals. Having a budget can help people feel more in control of their finances and make it easier for them to not overspend and to save money. People who budget their money are less likely to obtain large debts, and are more likely to be able to lead comfortable retired lifes and to be prepared for emergencies. Methods of personal budgeting In the most basic form of creating a personal budget the person needs to calculate their net income, track their spending over a set period of time, set goals based on the information previously gathered, make a plan to achieve t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Planning
In general usage, a financial plan is a comprehensive evaluation of an individual's current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans. This often includes a budget which organizes an individual's finances and sometimes includes a series of steps or specific goals for spending and saving in the future. This plan allocates future income to various types of expenses, such as rent or utilities, and also reserves some income for short-term and long-term savings. A financial plan is sometimes referred to as an investment plan, but in personal finance, a financial plan can focus on other specific areas such as risk management, estates, college, or retirement. Context of business In business, a financial plan can refer to the three primary financial statements (balance sheet, income statement, and cash flow statement) created within a business plan. Financial forecast or financial plan can also refer ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Personal Finances
Personal finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events. When planning personal finances, the individual would consider the suitability to his or her needs of a range of banking products ( checking, savings accounts, credit cards and consumer loans) or investment in private equity, ( companies' shares, bonds, mutual funds) and insurance (life insurance, health insurance, disability insurance) products or participation and monitoring of and- or employer-sponsored retirement plans, social security benefits, and income tax management. History Before a specialty in personal finance was developed, various disciplines which are closely related to it, such as family economics, and consumer economics were taught in various colleges as part of home economics for over 100 years. The earliest known research in personal finance ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Emergency
An emergency is an urgent, unexpected, and usually dangerous situation that poses an immediate risk to health, life, property, or environment and requires immediate action. Most emergencies require urgent intervention to prevent a worsening of the situation, although in some situations, mitigation may not be possible and agencies may only be able to offer palliative care for the aftermath. While some emergencies are self-evident (such as a natural disaster that threatens many lives), many smaller incidents require that an observer (or affected party) decide whether it qualifies as an emergency. The precise definition of an emergency, the agencies involved and the procedures used, vary by jurisdiction, and this is usually set by the government, whose agencies (emergency services) are responsible for emergency planning and management. Defining an emergency An incident, to be an emergency, conforms to one or more of the following, if it: * Poses an immediate threat to life, hea ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit
Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt), but promises either to repay or return those resources (or other materials of equal value) at a later date. In other words, credit is a method of making reciprocity formal, legally enforceable, and extensible to a large group of unrelated people. The resources provided may be financial (e.g. granting a loan), or they may consist of goods or services (e.g. consumer credit). Credit encompasses any form of deferred payment. Credit is extended by a creditor, also known as a lender, to a debtor, also known as a borrower. Etymology The term "credit" was first used in English in the 1520s. The term came "from Middle French crédit (15c.) "belief, trust," from Italian credito, from Latin creditum "a loan, thing entrusted to another," from past ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Debt
Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. The debt may be owed by sovereign state or country, local government, company, or an individual. Commercial debt is generally subject to contractual terms regarding the amount and timing of repayments of principal and interest. Loans, bonds, notes, and mortgages are all types of debt. In financial accounting, debt is a type of financial transaction, as distinct from equity. The term can also be used metaphorically to cover moral obligations and other interactions not based on a monetary value. For example, in Western cultures, a person who has been helped by a second person is sometimes said to owe a "debt of gratitude" to the second person. Etymology The English term "debt" was first used in the late 13th century. The term "debt" comes ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Job Loss
Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the reference period. Unemployment is measured by the unemployment rate, which is the number of people who are unemployed as a percentage of the labour force (the total number of people employed added to those unemployed). Unemployment can have many sources, such as the following: * new technologies and inventions * the status of the economy, which can be influenced by a recession * competition caused by globalization and international trade * policies of the government * regulation and market Unemployment and the status of the economy can be influenced by a country through, for example, fiscal policy. Furthermore, the monetary authority of a country, such as the central bank, can influence the availability and cost for money through its monetary p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Home Appliance
A home appliance, also referred to as a domestic appliance, an electric appliance or a household appliance, is a machine which assists in household functions such as cooking, cleaning and food preservation. Appliances are divided into three types: small appliances, major appliances (also known as white goods) and consumer electronics (brown goods). Definition Given a broad usage, the domestic application attached to home appliance is tied to the definition of appliance as "an instrument or device designed for a particular use or function". More specifically, Collins English Dictionary defines "home appliance" as: "devices or machines, usually electrical, that are in your home and which you use to do jobs such as cleaning or cooking". The broad usage, afforded to the definition allows for nearly any device intended for domestic use to be a home appliance, including consumer electronics as well as stoves, refrigerators, toasters and air conditioners. History While many ap ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Investopedia
Investopedia is a financial media website headquartered in New York City. Founded in 1999, Investopedia provides investment dictionaries, advice, reviews, ratings, and comparisons of financial products such as securities accounts. Investopedia has more than 32,000 articles and reaches 20 million unique monthly viewers and posts paid advertisements as investing information. It is part of the Dotdash Meredith family of brands owned by IAC. Investopedia offers educational technology into day trading, asset management, foreign exchange markets, as well as financial educational courses. It also hosts a stock market simulator. Self-paced, online courses from expert instructors are available on Investopedia Academy. History Founding and early history Investopedia was founded in 1999 by Cory Wagner and Cory Janssen in Edmonton, Alberta. At the time, Janssen was a business student at the University of Alberta. Wagner focused on business development and research and development, w ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rainy Day Fund
A rainy day or rainy day fund is a reserved amount of money to be used in times when regular income is disrupted or decreased in order for typical operations to continue. In the United States, the term is usually used to apply to the funds maintained by most U.S. states to help deal with budget shortfalls in years where revenues do not match expenditures. This is critical to the operations of most states, which do not permit their governments to take on debt, meaning that services would have to be cut in the absence of reserve funds. New York State Comptroller Thomas DiNapoli recommended in March 2010 that the state require that one half of surpluses be deposited into the rainy day fund."DiNapoli wants to alter budget process" ''Business First of Buffalo'' and ''The Albany Business Review ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
