Please explain personal hotspot and when should I use or not use?

I Don't understand personal hotspot. Is there times to use and not use it?

Personal hotspot is a way to use the cellular data connection on your iPhone to allow a computer that does not have an internet connection to have access to the internet. It is a good way to use up huge amounts of cellular data and is only supported or possible if your cellular plan allows it.
There is something similar where a computer that has an internet connection can share that connection -- but I'm not sure that is what you are asking about.
Normally you don't need to manually turn cellular data usage off. The iPhone is designed to automatically use wi-fi when it is connected and to automatically switch to cellular data if wi-fi is not connected.
If you are asking about text messaging:
1) iMessage -- only to another iPhone or Apple device that has iMessage turned on and you also need iMessage turned on. It will use internet if you have it, your cellular data plan if you do not have wi-fi connection
2) regular texts. They don't use wi-fi but they also don't count against your cellular data usage. They count against your plans text allowance.
3) 3rd party apps such as WhatsApp -- you would need to investigate them yourself

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