February 11, 2010

Personal Finance management: do plan for yourself

Are you worried about your money management? Is it your financial affair which is causing you to spend sleepless nights? Is it so? Well....Before consulting a personal financial advisor, try to answer this question first. Have you really ever thought of a proper financial planning?  Most of you, I know, will say "no". So, here I'm going to share the most important facts of personal finance management with you, through this article.

When you go for a Personal Financial Planning, you must be aware of the five golden rules of Personal Finance Management:

Know and judge your financial state
No other knows your economical position better than you. So, prepare a personal balance-sheet in which all your assets and liabilities will be included. Make an income statement along with this, including your earning and spending. Now consider both of them. How far are you to attain the financial stability? Once you get the answer, you are ready for the next step.

Set targets
You are now concerned with your money-matters. So, set goals before yourself. However, you should not think of getting rid off all the troubles in no time. Take your time and set different goals: short-term as well as long-term. Sometimes, taking small steps are more fruitful than jumping. It will really help you a lot for proper planning.

Plan for your finance
You already have targets before you. Just pick out the strategy to achieve it. Try to cut-off unnecessary expenses and make an attempt for earning more. You can invest in real-estate, stock-market etc. Remember, nothing is impossible if we follow the right path. So, choose your right path.

Do it
Are you ready? Now go for it. Keep patience as it is not a matter of only a few days. But still if you are loosing yourself go to a financial planner.

Keep an eye on it and reconsider
But the whole matter is not over; along with the implementation of your plan......You should observe your financial position time by time and make readjustment to it to retain your financial stability.

Your Personal Finance includes budgeting your personal income and expenditure at first, taking into account the past spending.  Be careful of the risk factors like death, retirement, liabilities, properties etc. Invest in proper field. Plan for your retire life. Do plan for yourself.

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