Personel Finance - Essay Example

PERSONAL FINANCE In life, the management ofthe personal finances is very important. This is because that one’s financial status can change either for the worse or for the better at any unexpected times. In some cases and which is the most common scenario, one’s financial status changes for the worse. This is common in times of recession, loss of job, increment in the inflation rates and any unforeseen economic down turn taking place in one’s life. So I have and will continue to plan my life financially so that I am able to survive at all economic times now, in the near and unforeseeable future.

In the event that I lose my job and I do not have a source of income, I will adjust my financial lifestyles, budget and the financial plans that I have. The following analysis will look at the specific steps and how my new lifestyle will be like. The loss of job will be characterized by decline in my income; hence difficulties in making my ends meet. The first will be to accept this new situation and discuss it with my important people in my life. I will adjust my budget so that I only spend my money on the basics of the life and only on what I can afford at the current economic status.

This means I will adjust from spending on the things that do not bring any value in life at current status. For example I will stop going out or adjust to going out to the places that I can comfortably afford. I will invest the remaining resources to get another source of income such as securing another job or any income generating project. I will stop buying expensive clothes and only buy the basics. On the long term basis, this will affect my expected investments such as building my own house.

In conclusion, I will thus I will adjust all my plans both the current and the future to reflect my real economic status.