An Ultimate guide on Personal Finance Management.
                     AN ULTIMATE GUIDE ON 
PERSONAL FINANCE 
MANAGEMENT
BUDGETING
• Managing finance for beginners starts with budgeting. In simple terms, budgeting 
refers to the process of creating a plan of spending your money. A fine art, it allows 
you to allocate money for a range of needs.
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SAVINGS
• To address and achieve your financial goals, you need to save. While there’s no fixed 
rule on the amount you must save, as cash flow and needs vary across individuals, 
you can follow the 50/30/20 rule. 
• As per this rule, you must spend 50% of your income on needs, 30% on wants and 
save the remaining 20%.
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INVESTMENT
• Investment is essential to grow your money and build a corpus for addressing short 
and long-term goals. 
• You can make investments in fixed-return and market-linked products. In the former, 
the returns are fixed, while in the latter they depend on the performance of the 
market.
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Emergency Fund
• Financial planners recommend that you should set aside three to six months' worth of 
living expenses in an emergency fund. If you're able to, it's a good idea to save even 
more.
Source: www.investopedia.com
Debt Management
• Good debt has the potential to increase your net worth such as borrowing for college, 
a home, or a small business.
• Bad debt is when you borrow to buy something that doesn't increase in value or 
generate income, including cars, clothes, and most credit card debt. 
Source: www.investopedia.com
Insurance Coverage
• Insurance is an essential part of emergency planning. Now is a good time to review 
your insurance (including property, health, life, car, and umbrella policies) to make 
sure you have the right amount of coverage, and to make changes, if necessary.
Source: www.investopedia.com
Healthcare
• Making sure you have adequate health insurance is only one aspect of your overall 
healthcare. 
•  You'll also need a medical power of attorney to make decisions on your adult child's 
behalf if they become incapacitated. 
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Keep a track of your expenses
• Many people usually tend to miss out on keeping a track of their regular expenses on 
any given month. 
• This will help you to see a better picture and help you manage and compare 
expenses going forward.
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Educate yourself with money 
matters
• Staying well-informed comes handy in terms of financial matters. In today’s world, it is 
important to trust nobody but yourself as this is your money. Being able to effectively 
manage your own money just makes life easier.
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THANK YOU