Make Your Future Brighter By Having the Knowledge of Personal Finance We all live in a very complicated world, which is really unpredictable and uncertain, but I do believe that our fate in the future does lie in our own hands, and we have the power to make our future and the future of our families and children more brighter, and that can only happen if we engaged ourselves in useful and beneficial activities. Nowadays, more and more opportunities and favorable circumstances can be obtained by the people in all parts of the world, which could supply them the advantages and the benefits that they deserved to have throughout the hardships and trials they have surpassed in their whole lives, but achieving those things are very difficult and the people should have the right skills and knowledge in order to achieve such benefits and advantages. Finance encompasses several things, such as the management of money, banking, credit, investments, financial systems which includes liabilities and assets, financial instruments and the study and creation of money, and there are three types of finance, namely the public finance, corporate finance and the personal finance. Having the basic knowledge of personal finance is very important and very beneficial to every individuals who aims to have a better life, it basically teaches the individual to use their extra resources and earning from their wages and salaries for a better usage especially for emergencies and future needs. The function of personal finance is basically to teach and assist the people in managing their money, such as by spending less, saving, budgeting and spending only for their and their family’s basic needs in life, and in result, they could gain much more than what they originally have. The most important component of personal finance is what we called as financial planning, and the whole process includes five steps which could help the individual in performing properly and correctly their plans and goals for their finances, and it includes assessment of the balance sheets, income statements and financial statements of the individual, making and designing your own set of goals, write down the details on how you can carry out your plans and goals, executing the plans and goals and finally is to monitor your plans if it is right and reassessment and adjustment can be done if required. Financial planning may include investments such as bonds, mutual funds and stock market, various kinds of banking products such as checking, credit cards, savings account and consumer loans, insurances such as life insurance, health insurance and disability insurance, retirement plans, educational plans, income tax management and social security benefits.