Planning the Finances:

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Nowadays with the increasing necessities, it is important for a person to plan for the finances, so that he can save money for his future. Keeping a record of essential expenditures can help one to save a lot of money. As seen, for a person having an average income, he should save atleast half of his salary for the necessities.

Answer and Explanation:

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For a person falling in average income group, he has to save atleast half of his income for expenses and only half income can be used in investment. Nowadays investment is a very good thing, we get a lot of benefits from investment. Suppose after ten years we are in need of money and we are out of job, then we can take out the amount of invested money applicable with some rate of interest, which we can use for our needs.

Learn more about this topic:

What Is Financing? - Definition & Types

from Corporate Finance: Help & Review

Chapter 8 / Lesson 7
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