Personal money finance is a way to manage one's cash balances. This can be done by the following processes:
1. Banking
2. Investments
3. Planning
Banking: Money sitting idle would not earn any interest. Again one should avail the various lucrative savings options of banks. For all these purposes banking is required. The various banking options are:
Creating accounts and deposits: There are three kinds of accounts. They are the savings account, the current account and fixed deposits, which are detailed under the following heads.
* Savings account aim at encouraging savings for future purposes. Irrespective of the salary scale of a person, he may open a savings account in his name.
* Current Account: These are not interest bearing accounts. Here the account holder can deposit and withdraw any amount of money at his disposal, as long as there is money in his account.
* Fixed Deposits: The account holder can borrow from his own account and also earn interest for the money deposited.
Another way of managing personal money finance is investment in different items listed below.
* Mutual funds: These are funds that attract the money of different investors to invest in equity or debit markets.
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