PERSONAL FINANCIAL PLANNING TOOLS FOR MANAGING INDIVIDUAL AND FAMILY FINANCES

Abstract

Personal financial planning is the need of the hour for individuals and families to manage their financial needs and to plan out about using surplus funds. Individuals and families have their own needs and wants, for which they are working hard. Hard earned money must be spent wisely so that desired savings can be maintained, and lifestyle practices can be sustained. It is a fact that individuals must be earning a good amount of money to keep up their existing lifestyle practices and have an investment out of savings. Investments and savings are made keeping in mind about the objectives that individuals want to achieve in future like funding the education of their own kids, buying an asset, or investing for getting a big amount of money post-retirement period. Individuals and families struggle to keep their expenses intact, as there is inflation. Similarly, individuals must also think about having a second source of income, so that inflation gets compensated. Individuals must have a plan to ensure that things are proceeding in accordance with the financial goals and policies of an individual. Financial goals are set by individuals after carefully evaluating the investment market scenario and the earning potentiality, thus goals remain active and lively. Individuals must flameout investment strategies that take care of financial goals of an individual. Savings the only source of revenue available for all salaried individuals to carry on with their investment goals. A plan must be prepared by an individual to reflect upon the revenue and expenses, and ascertain the surplus/deficit, accordingly the further decision can be made.