Finance is the field that generally deals with the investment of property and goods along with specific responsibilities. In short, finance is nothing but to make the right decision while investing one’s assets. Finance Guide helped people to understand the importance of investment and the correct measures of doing it. Via the field of commerce, students are taught the subject of finance in schools and various universities which helps them to understand the importance of finance in students life and get a glimpse of reality.
Let’s take a more in-depth look at Finance Guide to understand what financing is all about.
What are the Different Types of Financing?
Financing is a vast field, and it can be divided into three broad categories. These three categories are:
Personal finance is keeping and maintaining one’s own assets. This involves one’s investment in education, taking up a loan, buying an apartment or house and other personal necessities. To get complete knowledge this you can follow top personal finance blogs in India which posts regular updates about personal financing.
Corporate Finance is mainly about the investment made by a company in order to increase the value of the organization. In small business finance, one tries to find and solve all financial problems related to a company or organization.
Public Finance is all about the investment made by a state or a country on the welfare of its citizens. Some basic examples are the constructions made by the government, the development of government schools for education and railway stations and airports for transportation, etc. These lump-sum amounts of money that are transacted fall under the subject of public finance.
How does Finance Guide help?
Finance Guide is the vital method to maintain the accounts of a person, a company or a state intact. Without accurate accounting, one can face severe problems, which can be very difficult to rectify. In the case of a business, accounting is essential due to the following reasons:
Know Initial Capital Before Starting a Business
Initial capital is the initial sum of money or property that a person needs to invest before starting a business. To start a business or a company, one must know how much he/she can invest to open one. Without money, one cannot open a new business. However, if a person spends without proper knowledge about his/her initial capital, it can lead to debts. Hence, knowledge about finance is vital before a person thinks about investing in a business. To get innovative business ideas and how to invest in business everyone should read the best business blogs in India, to start a profitable business.
Working capital is the amount of money to be spent on a company’s day to day operation. Finance Guide helps a person to understand about working capital that is how much he/she can invest on the different requirements of the company such as buying raw materials, an income of workers and laborers, tax charges, etc.
To make the company grow, one must invest in manufacturing machines which will help to increase the profits of the business. The exact amount that the company can invest can be figured out with the help of financing.
New product testing
Without proper financial accounting, one cannot explore new products, which can decrease the sales of a company. Hence appropriate funding is required to increase the sales margin of a company.
These are some reality checks which will help one, studying finance, to give a real-life image of what he/she has studied so far.
According to Robert J. Shiller,
“Finance is not only about making money, but it is also about achieving a target and protecting the goals that one has already attained. It is also about hard work and turning the world in a much better place”.
Advantages of Finance Guide
There are some specific reasons which will help a person, studying finance guide, in a positive way to deal with real-life problems. These advantages are stated below:
- Teaches time management
- It helps to understand the proper way to invest.
- Teaches to value financial resources
- Increases analytical skills
- Leading one’s life in a financially stable way
- A better understanding of profits
- Teaches to avoid steps which can lead one into debts
- Teaches to evaluate and analysis funding sources
Challenges of Studying Finance
Finance was not a very easy subject, especially when it comes to accounting. So here are some of the common problems that a person faces while studying finance guide:
One of the most common problems that a person faces is solving numerical. Finance as said earlier, includes accounting, which is all about summing, subtracting, multiplying and dividing. Students, who are troubled by mathematics, face these problems regularly.
Students often get confused up with terminologies or jargon, that is, a set of words that are used by a specific organization.
Lack of Examples
People often do not understand a context when they are not given proper examples. Finance often has context which lacks proper examples.
Lack of Proper Guidance
It is often found that students are unable to understand the subject because of its improper guidance. Teachers with inadequate knowledge are unable to guide students properly, which leads to a crisis in understanding.
Methods to Solve the Above Problems
It is quite right that students often face these problems; however, there are some methods which can help students to find a remedy for these problems:
Online Help – There are many online sites which provide tutorial for students who face issues on a particular subject. These sites offer not only well-described content but also illustrative graphics and videos to clear one’s doubts to its stem.
Continuous Practice – There is no specific solution to this problem. However, with constant practice, this problem too can be solved.
Reading – One can find several examples that are related to finance in the financial section of a newspaper. It is time-consuming work, but if a student can relate the context with the examples his/her concept can get cleared.
That is what makes finance a very important subject. Henceforth, it is very important for students to get a clear idea of this subject since finance is also applicable to the practical world. Reading Finance Guide can make capable of handling most of the problems that he/she can face in the so-called journey of life.