Spending, Saving, and Investing for Financial Security

A

The answer is A. Personal financial planning.

Personal financial planning is a process of managing your financial resources to achieve your goals and objectives, while taking into account your current financial situation, future needs, and risk tolerance. It involves creating a roadmap that helps you allocate your income towards spending, saving, and investing in a manner that helps you achieve financial security and the kind of life you desire.

Spending refers to the money you allocate towards meeting your daily expenses, such as housing, transportation, food, clothing, and entertainment. Saving involves setting aside a portion of your income for future use, such as emergency funds, retirement, or long-term goals, such as buying a house or paying for your children's education. Investing involves allocating your funds into financial instruments that provide returns, such as stocks, bonds, mutual funds, or real estate.

Effective personal financial planning helps you prioritize your expenses, save for future needs, and invest your money in a way that maximizes returns while minimizing risk. By setting financial goals, monitoring your progress, and making adjustments when necessary, you can achieve financial security and the life you desire.

Paying interest and regulating inflation are factors that can affect your financial situation but are not strategies for achieving financial security. Discussing your financial situation with a friend may provide emotional support but does not provide a comprehensive solution for achieving financial goals.