In this step, you evaluate your alternatives as part of the financial planning process. Use the many sources of financial information that are available. Look at your situation in life, your present financial situation, and your personal values. Consider the consequences and risks of each decision you make. This is like comparing personal financial planning theory and practise (more…)

A current account is the most common type of financial product: Most people have one. If you’re like the majority of account owners, you didn’t give much thought to what you want from a current account before signing up for one, which means your current bank account may be unsuitable for your needs. For example, if you frequently go overdrawn, you don’t want an account with expensive overdraft charges, or if your account is usually in credit you don’t want one with a poor rate of interest on current account balance. (more…)

Once you know how much money you need to meet your goals, you then have to think about where to invest it. To make that decision, you need to understand the different risk factors. Also, you should consider each investment’s potential for income and growth as well as its liquidity. You should evaluate the overall risk factor of making investment by examining five different components of risk: inflation risk, interest rate risk, business failure risk, financial market risk, and global company risk. Not only this will saving extra money, but the decision of investment is for long term investment only. (more…)