personal finance

    personal Finance 

Personal finance is the financial management done by an individual or a family to budget , save, and spend, taking into account various financial risks and future life events
Personal Finance revolves around planning your financials today so you can have a better tomorrow. This chapter explains the importance of having a personal financial plan and how you can build the 

When you think about personal finance, it often circles around planning your financials today, so that you have a better tomorrow. While some can do this themselves (or so they believe), few consult a financial advisor to chart this map for them. However, I’m not a big fan of approaching a financial advisor to help you chart a plan for yourself and your family. You should be able to do this yourself and your family.

After all, you know your family and their requirements best. You know what is good for the family and what is not. You work hard for your family today and dream of a secure future for them.

Your ‘Financial Advisor’, won’t do any of this.

He is most likely eager to peddle you a financial product that will earn him a good return. He will do the same with you and 20 other clients he may have.

So eventually, the onus is on you to secure your family’s and your own financial wellbeing. Remember, this is called ‘Personal’ finance for a reason. Its best kept personal and dealt with care and diligence.

Good news is, this is not rocket science. If you have the skills to do basic arithmetic, then half the battle is won. The rest of the work is just the application part where you’ll figure what is good and what is not.

This is exactly the objective of this module. At the end of this module, you will be in a position to do these things –

  • Develop a deeper understanding of financial products and what goes under the hood
  • Set up a financial goal and work towards achieving that
  • Identify financial setbacks and address towards correcting them

Key takeaways from this chapter

  • Personal finance is best when kept personal to oneself.
  • Eventually, you as an individual should be able to build a financial plan for yourself and your family
  • Savings early on in life makes a huge difference in the savings corpus at the end of the tenure
  • Time value of money plays a key role in personal finance

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