Your rent increased from $1,500 to $1,800. this means your financial needs have changed.
What does financial needs mean?
Financial necessities are costs that you must incur in order to live and work. They are the ongoing costs like your mortgage, rent, or auto insurance that are likely to consume a sizable portion of your income.
Cost versus ability to pay is the gap in financial need. The phrase "personal finance" refers to managing your finances as well as saving and investing. It includes financial planning for retirement, banking, insurance, mortgages, investments, and taxes as well as estate preparation. The phrase is frequently used to describe the entire sector that offers financial services to people and households and provides them with financial and investment advice.
Spending on wants enables you to live more comfortably. They are the items you purchase for pleasure or fun. Although you could survive without them, having them makes life more enjoyable. Food, for example, is a necessity, but eating lunch out every day is probably more of a want. Financial need is influenced by the student's college expenses in addition to their income.
Different people will have different financial need and desires. For instance, even if you need a car to commute to and from work every day, the kind of car you need might change. For instance, a luxury vehicle may be required if your line of work entails transporting wealthy clients. If all you're doing is driving yourself to and from the office, a more fuel-efficient vehicle will do the trick.
Personal finance is about achieving individual financial needs, such as having enough money to cover immediate expenses, making retirement plans, or setting aside money for your child's college tuition. Everything depends on your income, costs, living standards, and personal objectives and desires—and creating a strategy to meet those demands within your means.
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