How a Person’s Age and Personal Risk Feelings Might Affect the Decisions of Investments and Planning
The term often refers to the entire industry that provides financial services to individuals and households and advises them about financial and investment opportunities. Personal finance is about meeting personal financial goals, whether it’s having enough for short-term financial needs, planning for retirement, or saving for your child's college education. It all depends on your income, expenses, living requirements, and individual goals and desires—and coming up with a plan to fulfill those needs within your financial constraints.
It is necessary because of the high, mid- and long-term, negative impact of poor planning (Choi and Jang, 2016; Ekici and Koydemir, 2016). At the same time, this activity is complex for several reasons. Firstly, most people do not possess the necessary knowledge to make optimal savings and investment decisions. Secondly, individual planning is subject to many factors, such as income, professional career, or health, which, moreover, interact with each other.
With Personal Capital, you can track your cash flow, x-ray your investments for excessive fees, and make sure your retirement plans are on track. For more stable investment returns, take a look at Fundrise, a top real estate crowdfunding platforms for non-accredited investors. It’s free to sign up and explore. If you have dependents and/or debt, it’s a good idea to get term life insurance to protect your loved ones.
Annink, A., Gorgievski, M., and Den Dulk, L. (2016). Financial hardship and well-being: a cross-national comparison among the European self-employed. Eur. J. Work Organ. Psychol. 25, 645–657. doi: 10.1080/1359432X.2016.1150263
Choi, Y. C., and Jang, J. H. (2016). Relationships among social policy factors, national competitiveness, and happiness. Appl. Res. Qual. Life 11, 1189–1205. doi: 10.1007/s11482-015-9429-4
Fasbender, U., Deller, J., Wang, M., and Wiernik, B. M. (2014). Deciding whether to work after retirement: the role of the psychological experience of aging. J. Vocat. Behav. 84, 215–224. doi: 10.1016/j.jvb.2014.01.006
García-Gallego, A., Ibáñez, M. I., and Georgantzis, N. (2017). Editorial: personality and cognition in economic decision making. Front. Psychol. 8:848. doi: 10.3389/fpsyg.2017.00848