| Personal finance is an individual's financial | | | | |
| status. It's about how much money you have, | | | | Budgeting - This ensures that you are |
| and how much you need. It is about managing | | | | financially healthy and flourishing. It is a |
| your money - today and for tomorrow. Money is | | | | good idea to create and use a budget |
| the currency on which all world economies | | | | worksheet which allows you to make a detailed |
| function. Income - expenditure -bills- debts | | | | expenditure plan and helps you discover any |
| - savings: These are a fact of life. A | | | | shortage or unplanned expenditures. |
| constant for most is the endeavor to tip the | | | | |
| scales in favor of savings. | | | | Some useful tips in planning your finances: |
| | | | |
| Successful financial management includes | | | | - Handle your own money. If you choose a |
| planning and keeping records of income and | | | | financial consultant, ensure you understand |
| expenditure, budgeting, balancing your check | | | | how your money is being managed. - Save a |
| book, insurance and investments - whether in | | | | huge amount in interest by opting for a |
| real estate, the share market, funds or any | | | | shorter tenure of loan term - home/ car/ |
| of the other available mechanisms. You cannot | | | | personal. - Debt: Should ideally not be |
| overlook the necessity of planning your | | | | indulged in, or repaid at the earliest. - |
| savings, your tax savings and your | | | | Savings: it is easier to save more if you |
| retirement. | | | | start early - you can put aside small sums |
| | | | and over the years watch it accumulate and |
| A very interesting way to look at Asset and | | | | earn interest for you. - Retirement planning: |
| Liability is in the following terms: | | | | don't wait till you are 40 to start. Begin |
| | | | today - and ensure a comfortable lifestyle in |
| An Asset is anything which brings in money or | | | | your old age. Avoid cashing out your PF or |
| does not change the status of your money in | | | | breaking your Funds. - It's a good idea to do |
| the bank. A liability is anything which | | | | an Annual/ Quarterly financial health check |
| causes money to flow out - whether under the | | | | up. |
| pretext of taxes, interest or fees. | | | | |