There are hundreds of theories concerning personal finance, corporate finance, and handling public funds when it comes to financing management. Each of these categories has many other subsidiaries also. However, the fundamentals of these finances are similar and function in the same manner. For those who are new to the realm of finance, it is important to understand various fields in finance and the basics of each to manage it better. This article will explore what personal, corporate, and public finances are and how they function.

Kavan Choksi is an expert financial and fund management consultant who is serving a handful of premium personal and corporate finance clients. He used to offer financial management insights to all types of finance and investment enthusiasts of various scales. This article explains the fundamentals of different types of finances and how each works.

1. Personal Finance

For any individual who is earning and wants to build wealth, it is important to manage the personal finances to live a rewarding life, build wealth, and achieve their long-term financial goals. As the name suggests, personal finance deals with an individual’s funds. This covers various things like savings, personal budgeting finances, investing money, tax saving, insurance, and so on.

2. Corporate Finance

Corporate finance deals with the fund flow management of a company or a corporate. This covers a multitude of things like budgeting expenses, proper investing, loans and borrowing, dealing with investors, public funding, and so on. Corporate finance is a key area as it affects not only an individual but also a company’s stakeholders, employees, customers, and investors.

3. Public Finance

Public finance is all about dealing with public money, which is the governments’ financial management policies and practices. This is a complicated process including budgeting, saving, revenue management, investing, borrowing, lending, etc. Public finance is crucial because it decides the financial well-being of a state and the governments to achieve their financial and developmental goals.

Personal and corporate finances are interlinked as personal finance is applied more to individuals and corporate finance is more to businesses. A major difference between these is that corporate finance is much more complex than the former, involving stock prices, dividends to stakeholders, asset valuation, etc.

When it comes to public and private finances, the first one applies to the governments, which are more concerned about the interests of the state. Public finance involves a lot of things, including asset valuation, budgets, developmental funds, etc. Private finance covers individuals and businesses. Public finance is more complex and involves a lot of regulatory compliance measures to administer well.

Overall, finance is a complex subject as we go deeper into it. However, when it comes to managing an individual’s personal finance, we need not be worried about it. It is just a matter of understanding the fundamentals of finance and applying some common sense to manage your personal finances and build wealth. By following Kavan Choksi, you will understand the fundamental aspects of personal finance and effectively manage it for wealth building.