Personal Finance Essay

in the flesh(predicate) finance refers to the principal that is applied to the monetary decisions of an individual or a family unit. It addresses issues such as the ways in which the individuals or families obtain finance, budget, save and spend the monetary resources of a connection oer a given period of time sequence at the same time winning in account the monetary risks and the emerging life events that are related to the line of descentes activities. The wage or loss of a caller-out are derived by determining the incomes of a bon ton and the expenses that are incurred by a confederacy.If the incomes are more(prenominal) than the expenses the association comes wage for the club. If the expenses of the company are more than the incomes past the company incurs losses in the financial period of a company. Assumptions The income of Donna Terrell is estimated to be $3333 per calendar month since it is assumed that he take ins a lucre that is equally distributed passim the year. The expenses of Donna Terrell are besides assumed to be evenly distributed throughout the year except in the months where Donna Terrell contract that the expenses were incurred in those months.After Sherman acquisition of his unsanded job on June 2003 and his decision to function Donna Terrell was a positive move since later on the month of June the Donnas trade started to earn profits since in the previous months the business was incurring losses, but afterwards June 2003 the company started to suffer profits for the company, thus was in a position to run it personal business effectively (http//64. 233. 169. 104/search? q=cacheDmCJZy7zP6kJ) It is in like manner assumed that Sherman would earn a compensation that would be $1500 per the month that followed the month of June up to December 2003.In the first string of the year Donna business had been incurring losses from January to May 2008 since the amount of losses fool been increasing rapidly since the expenses of the business were more than the incomes of the business. After Mr. Sherman decision to assist Mr. Donna in giving him financial assistance the business started to improve in its performance. The business incomes was greater than the expenses as from July to December of the Year 2003 and this contributed to the change magnitude profits of the business as it move with its operation until December 2003. As at December 2003 the Company had profits that were over $13000.The management of companies buns run their activities if they enquire for financial assistances from friends and also financial institutions since after the Mr. Sherman decision to assist Mr. Donna the performance of the company started to improve. The instances where the management of companies runs other business activities that generate revenue to a company this can contribute to the profitability of the company since the extra income increases the companies working capital that enables the company to generate as much revenue to the company hence its increased returns and finally this sends to the emergence of the company.The management of companies should also plan their pay properly so as to keep down budget deficits as this can venture the performance of the company and also its theme as this can result to cut down sales volume for a company hence in some cases collect to the poor management of the companies finances the company go into liquidation that can lead to the closure of the company.