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Persoonlijke Financiën is a term that encompasses many aspects of financial management, including budgeting, banking, insurance, mortgage planning, savings and retirement. It’s a comprehensive topic that’s important to understand, since it affects your ability to achieve a comfortable lifestyle and secure your future.

The Functions of Money: What Makes It Valuable

The most basic component of personal finance is income, which refers to the money you receive from your job and investments. Smart personal finances help you keep your expenses under control and not spend more than you earn.


Smart spending involves separating your needs from your wants, and that can be a tricky task. The 50/30/20 rule is one simple framework: allocate 50% of your income to your absolute essentials, such as housing, utilities and food. Leave 30% of your income to discretionary spending, such as entertainment, tobacco & alcohol, gifts and shopping. Lastly, reserve 20% of your income for debt repayment and savings beyond the minimums.


Saving is the process of setting aside money from your income to prepare for expected and unexpected life events. It also helps you meet your long-term goals, such as a comfortable retirement and creating a legacy.

Investing is the process of using your money to buy assets that will increase in value over time, such as stocks and bonds. It’s critical to your financial security and can be a great way to grow your wealth. Becoming financially savvy means understanding the difference between good and bad investing advice, and deciding when to take risks and when to seek safe returns.

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