What types of risks are commonly associated with personal financial decisions? How can these risks be evaluated and minimized to reduce personal and financial difficulties?

The types of risks that are commonly associated with personal financial decisions are

1. Inflation risk

2. Interest rate risk

3. Income risk

4. Personal risk

5. Liquidity risk

Risks are often assessed and minimized by acquiring information, comparing alternatives before making a decision.

personal risk liquidity risk Inflation risk Interest rate risk

Explanation:

The types of risks that are commonly associated with taking up a personal financial decisions are numerous but this are the most common risks associated with such decision.

A personal financial decision is the act of taking up good and personal financial decisions (managing your finance) as regards to a personal financial goal which could be: starting up a new business, buying a new home, renting a new home or taking up a college degree.

To minimize the risks associated with having a personal financial decisions one should seek proper consultations from financial experts and also taking up insurance policies to mitigate losses