Personal finance is an individual's financial status. It's about how much money you have, and how much you need. It is about managing your money ? today and for tomorrow.

Money is the currency on which all world economies function. Income ? expenditure ?bills- debts - savings: These are a fact of life. A constant for most is the endeavor to tip the scales in favor of savings.

Successful financial management includes planning and keeping records of income and expenditure, budgeting, balancing your check book, insurance and investments ? whether in real estate, the share market, funds or any of the other available mechanisms. You cannot overlook the necessity of planning your savings, your tax savings and your retirement.

A very interesting way to look at Asset and Liability is in the following terms:

An Asset is anything which brings in money or does not change the status of your money in the bank. A liability is anything which causes money to flow out - whether under the pretext of taxes, interest or fees.

Budgeting ? This ensures that you are financially healthy and flourishing. It is a good idea to create and use a budget worksheet which allows you to make a detailed expenditure plan and helps you discover any shortage or unplanned expenditures.

Some useful tips in planning your finances:

- Handle your own money. If you choose a financial consultant, ensure you understand how your money is being managed.

- Save a huge amount in interest by opting for a shorter tenure of loan term ? home/ car/ personal.

- Debt: Should ideally not be indulged in, or repaid at the earliest.

- Savings: it is easier to save more if you start early ? you can put aside small sums and over the years watch it accumulate and earn interest for you.

- Retirement planning: don't wait till you are 40 to start. Begin today ? and ensure a comfortable lifestyle in your old age.

Avoid cashing out your PF or breaking your Funds.

- It's a good idea to do an Annual/ Quarterly financial health check up.