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Personal finance

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Introduction

Personal finance The importance of planning personal finance, you can plan how much money you need to spend in order to increase your financial situation. It's also good to plan you personal finance if you are a young person living away from home. It is important to plan your personal finance, in order to do this it is wis to plan and sort out your income usually your sources of in income include. > Wages/Salary > The sale of personal items > Gifts from family and friends > Inheritances > Savings Wages/Salary If you have a full time job or a part time job you will be receiving income usually weekly or monthly. You will be paid straight in to a bank account, but remember that you will receive this kind of income after deduction. The sale of personal items Selling of personal items for example if you don't have a job you may consider selling your CD player that you didn't use anymore to pay something you may need. ...read more.

Middle

Leisure activities Accommodation either rent or mortgage This is probably the number one priority for most people after the requirements of life have been taken care of. This can be a substantial part of income. A mortgage for example can be several hundred pounds a month and even rented accommodation is not easily obtained for less than 258 a month. Many people however share a flat and so the rent. Travelling expenses After a place to live, travelling usually gets top priority. Some of this such as travelling to work, this is essential while other journeys nay not be regarded as essential. These include short journeys, which can be walked or journeys that are probably for leisure. Food and clothes Without food you wouldn't live, but you can eat at home cheaper than going out to eat, and this would save money. Clothes don't have to be a designer's e.g. Nike, Evisu, Reebok, and Addidas. These are essential expenses but vary widely with individuals. While some may prefer to rely on second clothes available from the numerous charity shops, many not necessary those who can afford it prefer designer clothes. ...read more.

Conclusion

> Cash-the payment will be in notes or coins > Cheque- Is a written instruction , which tells to transfer the amount stated into another person's account,. Gross and Net pay: Gross pay is all the money earned before deduction of tax and National insurance and all that is left after the deduction is Net pay, which means that's the amount of money you can keep for your own use. The employer does the process from net to gross to net pay automatically he pays is to the government. Financial documents 1. Bank statement > A monthly statement of account which a bank sends to each account holder. 2. Passbook > A record of deposits and withdrawals and interest held by depositors at certain banks. 3. Payslip > A slip of paper included with pay that records how much you have earned and how much tax or insurance etc. has been deducted. 4. Receipts > Piece of paper received when something is been purchased as a proof of that you have bought the product or service. 5. Cheque. > Is a written instruction , which tells to transfer the amount stated into another person's account,. ...read more.

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