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Finance Can Be Classified In Different Ways

Finance Can Be Classified In Different Ways

The types of finance are then the subdivisions of the science that analyzes the way in which economic agents make their spending, saving and investment decisions.

In finance four areas can be distinguished, which we will explain below.

Corporate Finance

Corporate finance is dedicated to studying the way in which companies obtain and manage their resources. Thus, they cover several thematic areas such as the following:

Personal Finance

Personal finance studies how individuals or families obtain income and/or financing and manage these resources. Some of the topics it covers are:

Public finances

Public finance studies how the State captures resources and how it spends or invests them. Among his areas of interest we can highlight:

international finances

International finance studies the financial operations that take place at a global level. They are dedicated to the study of the following topics:

Use Of Credits

This is another of the basics of personal finance. They are a good economic tool to solve liquidity, but you have to know how to handle them. For example, the interest rate on a payroll loan is not the same as that on a mortgage loan or a credit card. You have to inform yourself before using them!

Entry

Did you think that salary is the only source of money? The truth is that there are several types of income. Most are governed by the different types of currency (pesos, dollars, euros, etc.), but exchanges of species are also included. To distribute them correctly, the ideal is that you start putting together your own budgets and understand what assets make up your income.

Bills

As with income, there are several types of expenses in this financial classification. The most feared are micro-expenses, also known as “ant expenses”. They are the small consumptions that you make in a period of time and when you add them up they can affect your finances.

An excellent way to combat them is to keep a daily record, either manually with a monthly expense calculator or with one of the best personal finance apps.

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