Effectively managing your income to build up funds for future investments is known as personal financing planning. It entails determining your objectives, evaluating your present financial situation, and developing an investing strategy to achieve them.
For instance,
Gary has a income of Rp 10,000,000.00/month he needs to pay off his debt of Rp 5,000,000.00 in 3 months and he wanted to own a motorcycle in 1 year to come for amount Rp 19,400,000.00. He is single with monthly expenses of Rp 8,000,000.00. How will be able to do his finances?
Solution:
Gary will need to pay of his dept as his first priority before putting aside the money for savings. Below is the Hierarchy of Financial Needs.
