Finance And Loans Reviews


It is a field that deals with the study of managing money, investments, credit, assets, and liabilities making up a financial system. It often relates to the study of money management and acquiring needed funds process. Every entity needs a fund to operate whether it is a government, business or individual. Finance has three sub-categories:

Personal Finance

A financial management of an individual or a family to make a rational decision in performing budgeting, saving, and spending their monetary resources. There’s a lot to consider when planning a personal finance like; taking into account some various risks, considering the suitability of their needs or investment private equity, and insurance or participation retirement plans, income tax management and social security benefits. Personal finance has 5 main key components in financial planning.

  • Assessment – compiling financial statements like balance sheets and income statements.
  • Goal Setting – to direct a financial planning, you must first set a financial goal. It can be a mix of short- and long-term goals. Your objective is to meet your financial requirements.
  • Plan Creation – in accomplishing your goals a plan must be laid upon. It compromises your investments, employment income and other necessary and unnecessary expenses.
  • Execution – having discipline and perseverance is a good thing when executing your financial plan. You can execute your financial plan effectively by consulting professionals like lawyers, financial planners, investment adviser and accountants.
  • Monitoring and Reassessment – you must monitor your financial plan and possibly make some adjustments and reassessments.

Reading personal finance articles and blogs can help you broaden your knowledge about finance. Learning about real people’s challenges and how they overcome those challenges is the best advice you could have about personal finance. According to Financial Planning Standard Boar, personal financial planning has six areas to focus.

  • Financial Position – examining net worth and household cash flow will help you understand the availability of your personal resources. Net worth is calculated by adding all your assets minus the liabilities in your household. Household cash flow can also be calculated by summing up all your income in a year minus the expenses in the same year. Thus, financial position is the most basic aspect of accounting.
  • Adequate Protection – referred as insurance, a concept securing the value of your household from unexpected risks. Risks like death, disability, liability, property, health and long-term care. Risks can be self-insurable but mostly need an insurance contract.
  • Tax Planning – The largest expense in your household is the income tax. You should know when and how much taxes will be paid in managing taxes. The government progressive tax process which typically means that your tax payments will vary with your income. But the government also give incentives like tax deduction and credits that will help you minimize your tax burden. By using tax planning strategies, you can be free of worry and risks in the long run.
  • Investments and Accumulations Goals – What most people consider in financial planning is on how they can accumulate money enough to buy house and lot or car, business, pay for education, and saving for retirement. Inflation or rate of price increase over time is one of the risks in achieving your accumulation goal. Making an investment portfolio that has a higher rate of return can help you overcome this inflation.
  • Retirement Planning – Many of us will be experiencing a retirement and realizing a more comfortable retirement by identifying sources of income and managing assets is necessary for achieving your retirement income goal.
  • Estate Planning – process in disposing of all your assets after you die. It includes passing your value, naming a guardian and inheritance for children, and a life insurance to provide your family after your death. Estate planning is for everyone as we can’t predict how long we will live.



An act of lending money, property, and other goods to an individual or organization in exchange for future repayment with interest of the principal amount.Interest is charged amount in receiving loans and the principal is the amount you owed. Interest is also the offset charging fee of the risk that you may not pay the lenders.Governments, corporations, individuals and the financial institution can offer a loan. Expanding their business operation, they offer ways in growing money supply in an economy. A financial institution like banks and credit facility retailers primary source of revenue are the interest and fees from loans. The loan is a key to be financially successful but it comes with the risks of getting you into trouble. You must have a good understanding of your situation when committing to a loan. Because if you can’t afford to pay your lenders in the required time frame, then the loan is not your thing.


Types of Loan

Secured LoanUsing items or your assets as collateral. A mortgage loan is a very good example of this kind of loan. Usually, a lien is placed on items like home and cars when used as collateral. A deed or title of this items are held by financial company or banks when applying for a loan, and can only be claimed after you fully paid the loan together with the interest and other fees. A secured loan is the best way in getting the much larger amount of money. It also offers much lower interest rates and longer repayment terms. Secured loans imply that before you can repay your loan according to the terms and condition, your items used as collateral is provided with “security”. But always remember, not repaying your loan can recourse the lenders to your collaterals and they are able to sell it. Examples of secured loans are; Mortgage, Home equity line of credit, Auto loan, Boat loan, and Recreational vehicle loan.

Unsecured Loan– As the term implies, this is the total opposite of secured loans. The lenders are taking a much higher risk in this kind of loan, there are no items used as collateral in case they are not paid, but the interest is much higher. Usually, lenders only offer an unsecured loan if they are totally sure that the people they are offers have the higher chance of repaying. Lenders assess their borrowers using criteria such as character, capital, capacity conditions and collateral. These are their basis of the and worthiness. General economic factor and borrower’s situation is also one way of lenders assessment. Examples of unsecured loans are; Personal (signature) loan, Credit cards, Personal lines of credit, Home improvement loans, and Student loans.



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