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