Whether we like it or not, money is what drives almost all our activities in this modern world. Achieving physiologic, safety, security, and esteem needs entails monetary fuel. Earning cash and having a continuous source of income is also what makes the concept of a “stable” life possible. The reason why we study, work, and thrive is for us to have sufficient finances in order to survive in this competitive era. Knowing the different kinds of financial services can assist us in living life conveniently.
Kinds of Financial Service
The three basic types of monetary services people can avail involves banking, insurance, and investment. A lot of institutions specialize in these areas in order to assist people in their efforts to earn, save, and protect their funds.
The Role of Banking
Banking has been around since ancient times where grain merchants granted loans to farmers and traders. The first banks operated during the Renaissance period where rich cities built secure structures to store jewels and riches of powerful politicians and royal families. Today, banks still function the same way as institutions for storing, borrowing, and lending money. They accept deposits and channel the funds to different capital markets for other purposes. They usually pay a small amount of interest to individuals who trust their funds in their place for safekeeping. Usual transactions involved are those concerning savings, checks, loans, mortgages, and credit cards.
Importance of Insurance Click here for more information about Portafina
No matter how large your savings accounts are, there is still a possibility that everything you have worked hard for will go down the drain in case some kind of unfortunate event occurs. Insurance plans are the only means to protect people, finances, and assets in cases of accidents, illness, disability, and death. Availing insurances puts you into a contract with a company that promises to shoulder any significant loses that might occur in exchange for a regular monthly payment. There are different kinds of insurances available. The usual ones people avail are those for health, homes, vehicles, and businesses. Uncertainty is what makes insurance important. We never know what could happen to the things we value most, so we avail of these deals in order to have peace of mind.