Without a doubt, the study of finance should begin with the study of fundamental theories. Finance is a subject that belongs to people belonging to any profession and it can help you in different ways whether you are a student, a housewife, a driver, a professor, a business owner or a stay-at-home father. Finance is intimated connected to your day to day life and day to day activities.

A good finance manager can only vouch for good commercial returns down the road. The time value of money is one of the most basic finance theories. The study of finance must not be limited to people such as bankers, business owner, and economist. Good management of money can really help you live a happy life because more than seventy percent worries of people belong to finance.

The time value of money helps you understand the current value of the money is more than it is going to have in the future. With the passage of the time, the value of money is decreased its face value. The currency is worth more than the same currency in the future – this is called ‘the time value of money’. Whether it is about running a government, running a country, running a business, running a house, or running a school, every person, every business owner and every individual need funding – all entities need funding to keep the ball rolling.

Finance can be further divided into three main subcategories including public finance, corporate finance, and personal finance. Financial planning is essential whether you are a business owner or a housewife, you need to formulate strategies to meet with your future needs. Every person has to plan to take their financial constraints into account. No business, no house, and no institute can work wonders without a good, reliable and right financial planning.