What is Finance? Want to know it in a much simpler way?

Yes, Finance is the term which will confuse most us!!

All of us do come across this term not just once but most of the times in our life. Basically, when we end up having big goals to achieve but will not be having that much amount of money to fulfill it.

Exactly!! This is when Finance comes into picture.

Definition: Let me explain it by breaking it into 2 parts.

  • 1st part – Receiving Money –  Any organization (Banks, Finance companies, etc.) or any person will lend you money to fulfill your dreams when you badly needed it.
  • 2nd part –  Returning Money – You need to return the money you received from the lender.

Now you might be thinking this is very simple thing to do right????


Here is the catch, Please be very careful with this i.e. specially in,

2nd part –  While returning money back, you need to pay additional money in the form interest to the money you had received.


The time in our life, most of the time when we come across this terminology called Finance. In most of the cases, we tend to be in more hurry to somehow get the money at this moment and let’s think about returning money in later part.

And eventually, end up paying much higher interest rates for the money received.

So please be careful in deciding and thoroughly understand any finance matters and only then step into it.

Thanks for reading this post.

Hope so, this was of some help to you in understanding the term Finance.

Have any questions in mind about Finance?


One thought on “What is Finance? Want to know it in a much simpler way?

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