Financial Management Is the process of managing the financial resources, including accounting and financial reporting, budgeting, collecting accounts receivable, risk management.

Three areas of Financial Management:

First is..

Personal Financial Management is mandatory in today’s world. It provides the means of keeping track of personal expenses, personal debt and subsequently helps the calculation of a person's net worth financially.

The following are some of the tools used for personal financial management: Expense sheet:

Preparation of expense sheet is the key to personal financial management. If one is left with no savings at the end of the month, then the best way to curb the situation is to prepare an expense sheet or make a budget plan. The expense sheet includes the following elements:

1. Calculation of income level:

This is the sum of the post tax income or disposable income, spouse's income, investment income, rental income and other sources of income if any like alimony.

2. Calculation of expenses:

Expenses on grocery, medical help, house help, laundry, basic amenities, phone, mobile, transportation and cable add up to household expenses. Lifestyle expenses include expenses on books, newspaper, clothing, personal care, entertainment, travel, holiday, eating out, and club or gym membership. Fixed expenses include expenses on house rent, children's fees, home loan, auto loan installments, other loan installments andinsurance premium. Household gadgets, white goods, festivals, family obligations and the like are included under the miscellaneous expenses.

Another vital aspect of personal financial management is personal debt management.

Personal Debt Management:

In order to keep track of pending payments and avoid falling into the debt trap, a number of aspects need to be considered.In case of auto loan, housing