Personal finance refers to the management of an individual’s or household’s financial resources, including income, expenses, savings, and investments. It involves making informed financial decisions to achieve short-term and long-term financial goals, such as paying off debt, saving for retirement, or purchasing a home. Personal finance includes a range of activities, such as budgeting, saving, investing, and managing credit and debt. Effective personal finance involves understanding one’s financial situation, setting realistic financial goals, creating a plan to achieve those goals, and regularly monitoring and adjusting spending habits to stay on track. By effectively managing their finances, individuals can achieve greater financial stability and security and build a strong foundation for their financial future.