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Finance is a wide field and an important one in the society. Everyone needs financial advice once in a while whether in business, running an organization or taking up a task that requires huge amounts of money. Finance is the centre of any organization, and for it to run smoothly, financial planning is a must.

As a finance professional, you need to understand that this is a field that deals with allocation of assets and liabilities over time under conditions of certainty and uncertainty. The key point that rotates around finance is time value of money, which is the purchasing power of one unit of currency, and this varies over time.

If you are considering a career in the field of finance, there are several categories to consider. Researching and comparing these different categories is important as it will help you choose the best one. These different categories are:

  1. Personal finance

  2. Corporate finance

  3. Public finance

Personal finance

This is the type of management that requires individual or a family to obtain, budget, save and spend their resources while taking into account any financial risks that might arise and expected future events. As a personal finance manger, you are required to guide your clients towards what suits their needs best in regards to a wide range of financial products on offer.

According to http://www.leasequit.com/, the personal finance planning process involves five steps. They include:

  • Assessment of a person’s financial situation. This is done by compiling balance sheets and income statements.

  • Goal setting, which can either be long or short term. The main objective here is to meet specific financial requirements.

  • Creating a financial plan with details on how to accomplish the already set goals.

  • Execution of the financial plan. This is where you, as the financial planner, come in to help the client go through the whole financial process.

  • Monitoring and evaluation is the final step which is done for possible adjustments and reassessments.

Corporate finance

The main goal of corporate finance, and for you as the professional, is to maximize and increase the value of a shareholder. It deals with sourcing funds and the capital structure of companies and corporations. You can do this by increasing the value of a firm to shareholders as well as tools and analysis used to allocate financial resources.

Maximizing shareholders value requires you to balance the capital funding between investments in projects that increases the firm’s long term profits and sustainability. You can also do this by paying excess cash to shareholders in the form of dividends. Another way is where you can use the firm’s surplus capital resources on investments and projects to expand the company business.

Public finance

In this category, you assess the role of government in the economy. This requires you to look into government revenue and expenditure of the public authority and come up with possible adjustments that can yield desirable effects in the future. These effects may range from allocation of resources, distribution of income and macroeconomic stabilization and are possible if the government gives a starting point in financial analysis.