Personal Finance: Understanding Goals, Tools, and Financial Planning

This assignment provides an introduction to personal finance, emphasizing the importance of setting financial goals, and planning for the future. It covers the objectives of personal financial planning, which include ensuring financial stability, securing funds for set goals, and estimating the time required to achieve these goals. The assignment details various personal financial goals, such as financial security for the family, creating funds for children's education, and establishing an emergency fund. It also outlines several tools for achieving these goals, including health and life insurance, investments in equity and debt, and real estate. The assignment also provides references to external resources for further study.

Personal Finance - an Introduction

What is personal finance?
Personal finance is all about managing your
money in such way, which enables you to
reach your long term, medium term and short
term goal in a specified period of time and
help you achieve your financial goal and keep
your family financially secure.

Objective
Objectives of a personal financial planning can
be explained in following points:
 Ensuring financial stability for family
 Ensuring availability of funds for set goals
 Estimating required time for set goals
 Identifying source of funds

Personal financial goal
“Regardless of what life stage you are in, you are
likely to have some short and long term personal
financial goals. Setting tangible and realistic goals,
following them, and tracking your progress is the key
to success in achieving all of your financial goals.”
(Moneymanagement.org, 2019)
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Personal financial goal
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(Dixie.instructure.com, 2019)

Personal financial goal
Personal financial planning goal can be listed in
following points:
 Financial security for your entire family even in
absence of main bread earner of a family
 Creating children fund for children education
 Creating fund for child marriage
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Personal financial goal
Personal financial planning goal can be listed in following
points:
Home buying
Creating emergency fund
Any debt settlement
Creating sufficient retirement amount to fund post
retirement expenses like daily expenses, medical expenses,
etc

Tools for achieving goals
 Buying sufficient Health insurance coverage to meet any
unexpected medical expenses for entire family
 Buying sufficient Life Insurance for your dependence in
case of any miss-happening to main bread earner of a
family
 Buying home insurance to cover home mortgage, if any
 Invest in Equity- mutual fund, stock market for children
education, marriage, retirement for long term
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Tools for achieving goals
 Invest in debt- bank fixed deposit, government bond
for short term financial requirement, like down
payment for buying home or buying car, holiday trip
 Invest in 5-10% of earning in gold, silver
 Invest in real estate for long time investment to gain
good return in long term

References
Moneymanagement.org. (2019). How to Set and Keep Personal Financial Goals.
[online] Available at:
https://www.moneymanagement.org/credit-counseling/resources/how-to-set-and-
keep-personal-financial-goals [Accessed 14 Jul. 2019].
Theinstitutes.org. (2019). Introduction to Personal Financial Planning. [online]
Available at: https://www.theinstitutes.org/doc/resources/CPCU_556.pdf [Accessed
14 Jul. 2019].
Dixie.instructure.com. (2019). Objective 1.3 - Explain how setting goals affects
personal financial planning.: GFL_CE DSU. [online] Available at:
https://dixie.instructure.com/courses/366127/pages/objective-1-dot-3-explain-how-
setting-goals-affects-personal-financial-planning [Accessed 14 Jul. 2019].
Good Financial Cents®. (2019). The Top 10 Good Financial Goals That Everyone Should
Have For 2019 - Good Financial Cents®. [online] Available at:
https://www.goodfinancialcents.com/good-financial-goals/ [Accessed 14 Jul. 2019].

Thank you!!!