Expert's advice: Cold weather is increasing, do not take medicine indiscriminately if you have a cold As the country, including Kathmandu, has started to experience extreme cold, experts have suggested not to buy medicine if you have a cold this season. Children and senior citizens especially need more care during the winter season. Experts have urged people to take necessary precautions, saying that children are more likely to suffer from respiratory problems, colds, throat infections, stomach aches, etc. during the winter season. Pediatrician Dr. Ramhari Chapagain of Kanti Children's Hospital says that respiratory problems, pneumonia, and 'cold diarrhea' (cold-related diarrhea) are more common during the winter. 'Nutritious food is needed to protect children from colds. Although children need nutritious food at any time, they need it more during winter than at other times. It helps in digesting common diseases,' he said. He also said that all the vaccines pro...
What are the 5 C's of personal finance? What are the 4 pillars of personal finance?
### **The 5 C’s of Personal Finance**
The **5 C’s of personal finance** provide a framework to assess financial health and decision-making. These principles are often used by lenders to evaluate borrowers, but they can also guide individuals in managing their personal finances. Here’s what they entail:
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#### **1. Character**
- Refers to your financial responsibility, creditworthiness, and reliability.
- Lenders assess this through your credit history and payment habits.
- For personal finance, it’s about maintaining good financial discipline, such as paying bills on time and avoiding unnecessary debt.
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#### **2. Capacity**
- Represents your ability to repay debts or meet financial obligations.
- Measured by your income, expenses, and debt-to-income (DTI) ratio.
- In personal finance, it involves ensuring your expenses are well within your earnings and having a solid plan to manage loans.
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#### **3. Capital**
- Refers to the financial assets or resources you possess, such as savings, investments, and property.
- Having sufficient capital indicates financial stability and a lower risk of default.
- Building capital is crucial for personal finance, providing a buffer for emergencies and future investments.
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#### **4. Collateral**
- Refers to assets that can secure loans, such as a home or car.
- While not directly applicable to everyone, in personal finance, it underscores the importance of asset ownership and protecting those assets through insurance and maintenance.
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#### **5. Conditions**
- Refers to the economic environment or circumstances that may impact your finances, such as interest rates, inflation, or job stability.
- Being aware of and planning for external financial conditions helps you make informed decisions.
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### **The 4 Pillars of Personal Finance**
The **4 pillars of personal finance** are foundational principles that support long-term financial stability and growth. They are:
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#### **1. Budgeting**
- Ensures you allocate your income effectively across essentials, savings, and discretionary spending.
- Helps prevent overspending and builds financial discipline.
- Tools like the 50/30/20 rule or zero-based budgeting can simplify this process.
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#### **2. Saving**
- Building an emergency fund is essential for handling unexpected expenses.
- Long-term savings for goals like retirement, education, or major purchases ensures financial security.
- Automating savings can make the process consistent and effortless.
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#### **3. Investing**
- Investing grows your wealth over time, helping you beat inflation and reach financial goals.
- Diversifying investments across stocks, bonds, real estate, and mutual funds reduces risk.
- Start early to maximize compounding benefits.
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#### **4. Protection**
- Safeguarding your finances through insurance (health, life, auto, home) is critical.
- Having a will or estate plan ensures your assets are managed according to your wishes.
- Regularly reviewing your coverage ensures it evolves with your needs.
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### **Conclusion**
The **5 C’s** focus on assessing financial health and responsibility, while the **4 pillars** provide actionable steps to build a solid financial foundation. Together, they create a comprehensive framework for managing personal finances effectively.
Which of these principles will you focus on to strengthen your financial journey?
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