Personal financial planning

Personal financial planning

Personal financial planning.

Personal financial planning is a process of analyzing an individual’s current financial position and based on that information; make a forecast of short and long-term needs. The financial decisions that an individual take can be about investment, insurance, mortgage, savings and several others (Altfest, 2007).

When such decisions are made, there is need to make a special forecast of the future in order to ascertain the possible financial risks and future life occurrences that may affect a person’s financial position (Gitman, 2013).

As a result, people are at times required to hire financial planners who are good in analyzing a person’s financial position and provide advice based on the predicted future. This paper will look at why personal financial planning is done. As well as why it is vital for students to understand the topic in order to be successful in future.

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Personal finance planning is such an important topic as this paper has established. It is possible for one to live a comfortable and bright future irrespective of his or her current income as long as he or she has a good financial plan.

Personal finance planning takes into account the current income, analyze it and based on the analysis, set goals on how the income will be spent, saved or invested for the purpose of living a comfortable life in future. Therefore, students need to understand the importance of this topic if they really have to succeed in their life.

 References

Altfest, L. (2007). Personal Financial Planning. New York: McGraw-Hill Irwin.

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