Financial management skill is one of the most important in life management skills. This skill effects our financial decision and consequently affects almost every area of our life.

Personal finance is a huge topic regarding all the financial aspects of an individuals or families financial situation and financial decision making. This financial management skill can be complicated if we didn’t spend our time to arm ourselves with the finance knowledge we need.

Personal finance planning is not only planning how much bill or loan able to pay with income from working or investment. When mentioned about personal finance planning, it normally refer to a process of handling personal financial situation: look at intake and output, figure out how to save and spend, planning for our future or desired dream.


Below are steps involved in this life management skill:
• Financial situation assessment
• Goal setting both of short term and long term life goal
• Construct appropriate finance planning to achieve the goals
• Finance planning execution
• Monitor from time to time and follow by reassessment

With this life management skill, the process of personal finance planning, we might able to answer: How Much Money is enough for Our Living, as this life management skill helps us to understand whether our financial decision have any impact on other financial decision. We then can revise our financial decision accordingly if there are affecting our short term or long term financial goal and look forward for financial freedom.

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