What is personal finance planning
What is ersonal finance planning? For a quick definition, it is simply those finances that are classified under persons, not business. If it is under a business name, the finances can no longer be personal. Successful personal finances involve a set of tools that are commonly known. Some of them can be done are done by machines (computers) with software.
One of the most common tools for personal finance planning is a budget. Unfortunately, with the recent change of financial statuses in the Western world, many who did not need a budget before now do. The key to maintaining a good budget is will power. If a person can not keep their hands off the little things, such as those scrumptious candy bars at the checkout counters, a budget may help them. Why? Because they will need to write it down as an expense. Otherwise, if they do not write it down, it will not be an honest budget. The purpose of a budget is to get the income to do what you want, not what it wants. That puts the budgeter into the driver’s seat of personal finance planning. The bare necessities will be the important points of the budget, such as food, clothing, vitamin C, transportation and rent. Once the person becomes proficient with a budget, they can move on to other things.
Software and computers can be used with personal finance planning. There are plenty to choose from. One popular type is Quicken Deluxe. This is going to cost about $60 dollars and there is no free trial to see if you like it or not. Since it is the most popular, its competitors are also around the same price. Microsoft Money Plus is $65 dollars and is supposedly a full featured personal finance planning software. Banktree makes another software that is cheaper and has a free trial to test out how well it works. Mint dot com is another choice.
Personal finance planning can contain portfolios such as IRAs, stocks, debt consolidation, tax planning, mutual funds, life insurance, mortgages, real estate and more. Some people even include the funeral in their financial planning. With all the options available, it may be necessary to hire a personal finance planner. For those without the money to spare, they will be forced to do it themselves. Starting early with the planning will be better for those who plan on going to college.
Those who feel like they are on the generous side can include charity. There are, again, a truckload of charities to choose from. One of the most acclaimed is the Conservation Fund. The Matthew 25 Ministry and Compassion International are also popular choices. Personal finance planning can give a warm fuzzy feeling for those who are able to spare the change. Make sure to choose a reputable group or you may be padding the pockets of a shyster or two.
Now that you know the answer to the question, “What is personal finance planning?” you can move ahead in the right financial direction.