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Personal Finance – A Financial Goal

According to you what is the keyword to a successful life? Well, to me financial stability is the keyword for having a fruitful life. And for that you need to have a personal finance. A few says that money cannot buy happiness but that does not mean that you do not need money. You have every single right to be happy. It is a reality where dream comes to perfection and well civilized.

Personal finance consists of a proper budget, savings, investments, income tax, emergency fund, insurance, loans, policies and retirement planning. It is a financial management towards you and your family. So you need to work accordingly to cope up with each and every single detail. This is how you are going to give yourself a prosperous and wealthy life.

Things you need to know

Often there are several queries regarding personal finance. Before discussing any further let us drop a light on some few widely discussed subjects.  Likewise,

  • The theory behind personal finance is a very simple maths. You need to work with financial planning. Your income, your expenses and your savings. These are the keywords by which you can be benefited.
  • Short term financial goal will lead you to a wealthy life. If you have a financial plan after 10 years you can save your money accordingly. Your goal will help you to see the big picture.
  • Investing your money in a proper way is another step taken towards personal finance. With minimum term and condition to higher profit, this should be you mentality.
  • A financial planning is required to evaluate your finance. Either it could be cut off expenses or earning extra money. Widely used by small to large businesses.
  • Assets are important. You need to grow your assets either it could be your gold or your property. At time they will be your emergency fund and also a part of your finance.

Check this guide to know best tax saving investments for you under SECTION 80C

Three ways to manage your personal finance process

According to a survey most of the people under 40 years do not think of personal finance or retirement or profound savings. Here are top three ways you can manage your personal finance. Nearly everyone has to deal with personal financial management in their lives.

Budget is important

For the first time do not limit yourself. Get a rough idea what you have spent during the time. You need to calculate about your expenses and savings. From the next month just make a simple list regarding your expenses you did. It could be your daily expenses or unwanted expenses, policy premium, household expenses like gas, grocery, furniture, even your emergency fund including your savings. This will give you a better idea. Now you need to calculate what your income is and how much your expenses are? How much you could have saved and how much you spent which were unnecessary? It varies month by month but you need to stick to an average.


Making a right investment is what you need in personal finance which you are saving each month. If you are not familiarizing with various investment options it does not even make any sense. If you have profound knowledge of investment option then only you can take the advantage. There are plenty of retirement schemes you can choose and can invest accordingly. You need to choose the best options where your returns are high and you can afford the premium for the next 15 to 25 years.

You can think of the other ways as such stock market, bonds, property or gold assets, mutual funds, join venture, short term or mid-term policies. Do not gamble with your money. You must have insurance coverage. You need to have life insurance, health insurance, accidental insurance because time never says how it comes. All you have to remember that you are insured and you can claim your money if anything worst happens.

Essential elements of personal finance

There are a few tips you need to follow if you want to stick to your financial plan.

  • Stick to your objectives and be determined.
  • Maintain a proper monthly balance sheet.
  • Plan your income tax and premiums accordingly. Do not exceed your limit.
  • Note down your problems and work accordingly. Take financial suggestions if necessary.
  • Need to maintain your cash flow and try to grow your source of income and savings.
  • Properly execution of your plan.
  • Know the value of your assets.

Personal finance responds to the crucial questions : How much money is need in the future in individual life events? How do I need to save money? The personal finances that each family needs are the application of the principles of financial economics to individual and family financial decisions.

Need to grow your savings

Well, just savings and profits are not enough. You need to grow your savings and try to earn extra little fund. You can start by making an emergency fund according to your need. You have to cut off as much expenses you could. You can do part time job to support your savings and finance. Do not use credit card all the time. Wait for a good deal. Do not buy if you can afford a small rent.


There are a lot of details you need to pay attention in relation to personal finance. Often it is related to your family. Do you really want to give yourself or your family a wealthy and healthy prosperous life? If yes is your answer then you had to start if you have not started yet. There are many benefits if you can plan accordingly. Finance is something which comes from your income and your savings. It is not only a bank account but also is your asset of hard days.