ADVANTAGES OF EACH SOURCE OF FINANCE AND THEIR DISADVANTAGES

1. PERSONAL SAVINGS

Personal savings is money that is put aside by an individual for non-immediate use.

Advantages of personal savings.

 The savings can cover emergencies hence give you peace of mind.
 The savings can cover loss of emergencies e.g. During the covid 19 times many jobs
were lost and those who had personal savings were at a good advantage and could start a
new business on their own.
 Personal savings can earn interest.
 Personal savings also increase net worth.
 Personal savings prevent interest expenses.
 One can become financially independent
 Reduce the risks of debts.
 Big life purchases.

Disadvantages of personal savings