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Personal finance means to optimize the use of your money so it gives you profit. It includes saving and utilizing your finances in an appropriate manner. Carrying out personal finance is not a difficult task. It involves planning and strategic approach. Personal finance does not require any age, gender or qualification. You can do it even when you are very old or you can either save your money when you are a college going student. There are a number of ways through which you can effectively carry out a plan for your personal finance. Retirement planning is just one example of personal finance.

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If you are contemplating the possibility of taking a more active role in your personal investments, then one of the most important steps you can immediately take is not trying to decide where to place your capital, what stocks to buy, or what currencies to short; instead, the most important step to immediately take is to sit down and write out a business plan.

If you have a good credit score, you might be able to get a bank loan for almost all of your long term and short term goals. Yet, the biggest financial goal of any individual must be achieving complete personal financial independence. However, it is an unfortunate fact that more than 23% of Americans are under debt which they consider unmanageable. Also, half of the population has less than one month of saving for emergencies while 20% of them don’t have any saving at all.