Personal Financial Management

People who are in need of money would either make use of their income in case of smaller needs and for bigger purchases; they would obtain the help of lenders who would offer personal loans to them. Securing the loan might help the person get what they need at the present, but a proper financial management would help the person manage his or her finances without much issues. Economic conditions would not remain the same throughout, ups and downs are bound to occur and to manage through these, some act of management would be necessary.

As far as finances are concerned, one should expect the unexpected. Two main factors that might lead to problems include over-usage of funds and secondly no proper planning. If these two factors are dealt with seriously then, the person need not worry about anything. Thus for a proper financial management to be in place, borrowers should maintain a savings account, frame a budget and cut down expenses. It is not easy to achieve this because people generally tend to spend the money they earn within a flash.

Money saving mentality is present only among few people and this is the main problem. Research conducted amongst borrowers has shown that those who fall under the age category of 35 years seem to possess poor finance management skills. The reason behind this has shown numerous reasons and few of those include over usage of funds, improper budget planning and also having no control over the financial transactions performed by them. Experienced borrowers seem to have realized the importance of personal financial management.

Expense management

Payments towards utility bills such as electricity, gas, water etc. are unavoidable. People who live in a rented apartment would have to make the rental payments. Other unavoidable expenses might include transportation, food etc. Apart from these, spending money for buying certain gadgets, accessories and others would not be beneficial for the borrower. Those who possess them already should never try to buy too much than what is necessary. Cutting down expenses would help the borrower in saving handful of money.

Savings account

One should inculcate the habit of maintaining a savings account. About 10 to 15% of the monthly income should be placed as savings. Cash in a savings account would help the person during emergency situations. This would even help the person in any future endeavors that he or she might have, especially when they want to make down payment for a no credit check loan. Making higher down payment would reduce the level of risk for the borrower.


Based on the amount of money earned by the borrower, one should frame a proper budget plan. Budget plan should be in such a manner that apart from the standard expenses, it should provide around 10 to 15% of the funds for savings and also around 30% of the amount left in the borrower’s hands as disposable cash. This amount is mainly to cater immediate situations. Medical emergencies might occur during any time of the year. Hospital bills, operation bills, medicines etc. altogether would cost a lot of money for the individual.