Personal finance is the appliance of the principles of finance to the financial decisions of family unit or an individual. Usually it involves studying financial position, estimating long term and short term needs and advising the financial strategy.
Personal finance guide focuses on the personal financial planning. It constructs the principles of finance in the financial decisions of various family units or individuals. It contains concepts like spending, financial planning, credit management, asset and income protection, money and income management.
An individual and family can make their budget by showing the path of personal finance guide. And it helps them to maximize savings and minimize the expenditure. The guide to personal finance represents how personal financial planning is accomplished.
Assessment: Maintaining the financial balance sheets and income statements determine an individual’s personal financial status. The balance sheet represents the liabilities and assets. And personal income statement represents the personal expenses and income.
Setting Goals: Long term and short term goals should be set in any financial planning. After setting the goal a suitable plan should be formulated to achieve the goal, after setting the goal.
Monitoring and Re-adjustment: One should check the personal financial plans and adjustments from time to time.
Budgeting: An account of the expected expenditure and income should be kept to meet the various financial goals.
Banking: The various savings options of banks should be avail.