Personal Financial Planning
inancial planning is often thought of as a way to manage debt, but a good financial plan reallyis a way to make certain that you have financial security throughout your life. Many small business owners consider their business as their investment in their future, but that is a huge risk to take.The essential components of a good financial plan are investing, retirement planning, insurance, borrowing and using credit, tax planning, having a will, and ensuring the right people receiveyour assets.
inancial planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child'seducation or planning for retirement.
ncome and expenditure account
This is the account which is prepared for record the inflowsand outflows of the income and expenditure of the individual, firm, company, and any organization.I am taking this tool of accounting for managing or recording the inflows and outflows of my family andmyself also. We have our family business running by my father and brother.
ncome and Expenditure account for the year
ncome Amount Expenditure Amount
Father 420000 Interest Paid 47500Brother 240000 Electricity Bill 15000Kitchen(Food) 144000Vehicles(Servicing) 24000Insurance Premium 17000travelling Expenses 96000Clothes 96000Gas 4800Water 2400Telephone expenses 12000medical expenses 12000insurance auto 12000cable T.V. 4800House tax 1500Road tax 1000fees Education 80000
Surplus(transfer to balancesheet) 90000