"Create your own financial path"

Personal Financial Plan : The purpose behind financial plan is to create abundance of money which will lead to achieve individuals financial goals. Goals can be planing vacation, buying house, child's education marriage etc.

Need of  PFP: Your blueprint for building and maintaining a strong financial foundation is necessary. Because  this plan includes cash flow management, investment, insurances and also it will help to create financial independence.

Emergency Funds : Some doors open without prior intimation in our life. What I am trying to say is we can buy car or house, even marry, plan education etc. We can go for them with prior intimation or proper plan. But what about such situations which takes place without intimations such as health issues, job recession and stepping down in business etc. 

Formula For Emergency Fund : Let's see how we can create our emergency fund.you just have to multiply your monthly income by 6 or 8. The amount you will get after multiplying should be present in your emergency fund.

let's say if the monthly income is   30,000 /-
then your calculation should be      30,000 * 6 /-
the total amount will be             1,80,000 /-

This 1,80,000/- will be helpful to survive next 6 months without making much disturb to your day-to-day life in some kind of emergencies.    
Where to Invest this Emergency Funds:

• Best option is to make two parts of actual amount 1,80,000 which will be 90,000 and 90,000.
• So you can keep 90,000 /- into your saving account which is easy withdrawal but the rate of  interest is very low which is @4%.
• And another half you can keep where you get high return yet easy withdrawal in need. Best option can be liquid mutual funds and many more. 

Maintaining Our Own Personal Balance-sheet:

Balance sheet help you to keep track over your financial growth you can easily calculate your net worth or maybe net loss by simply listing your assets and liabilities at one place. It also shows individuals current value. If your net worth is high then obviously  your highly valuable. Let's understand with example.

Assets	Liabilities
House     50,00,000/-	EMI                         30,00,000/-
Car         15,00,000/-	loan                         10,00,000/-
saving     2,00,000/-	Total                       40,00,000 /-     net worth             27,00,000 /-
Total      67,00,000 /-	67,00,000 /-

 
net worth  =  67,00,00 - 40,00,000
                 = 27,00,000 /-

conclusion:

• Keeping your financial blueprint with you helps you to keep track over your finance flow.
• It will also helps to create financial freedom in an appropriate structure.
• Yes you can create abundance of money in your life if you invest in proper manner.