Role of Finance in Life
Nobody can deny the importance of money or finance in life, but at the same time, there is a limit to the amount of money or finance that is needed in life. Having accepted this fact, there is still an unsatisfying hunger in people to earn more and more even for people who value other factors like family, health and relationships to finance.
Finance may not be the be all and end all of life, but it is a commodity that makes life a lot more comfortable and easy to live. Finance is a fundamental entity that provides the basic necessities and the high –end luxuries of life. However, drawing the line at the right place depends on the prudence, judicious decision and caution of the person using it.
Importance of Finance for Business: The basic structure of any business is set up on a platform that is built using finance. Without finance, a business can never be established, therefore, finance is the very life of business.
Right from its stage of establishment to the conducting of business and the calculation of the final turnover or its profit and loss all are either dependent of finance or based on it. Moreover, the end result that is a parameter that determines the success of the business is the amount of finance that the business has either made or lost.
Importance of Finance for Personal Life: Unlike business, the role of finance in personal life is not mandatory but is surely essential as it helps to live a better life. However, the role of finance in personal life is shared with other factors like family, relationships, education, health and other factors. Some of them are very dependent of finance but other may or may not need it so urgently. For example a relationship can exist without finance, but to gain education, a person must have the necessary finances.