Personal finance is closely involved with budgeting.  Book keeping of details of an individual’s income and expenses is quite important.
• Income relates to every kind of revenue that is coming in to a person’s account in the form of salary, business income, rental income, ancestral income etcetera.
• Expenditure relates to every money going out of the pocket towards bills of all kinds ranging from expenses relating to departmental stores, telephone bills, insurance bills, loans, taxes etcetera…etcetera.
• Investment is quite important in any personal finance plan. You may never know if your existing income is continuous and uninterrupted.  Investments are best ways to back you up for your future needs.

A good personal finance is one that has enough money coming in for day to day expenditure with enough money to go to investment, taxes, insurance etcetera.  An upward growth of a graph of personal finance is quite a positive sign. And this cannot be achieved without good book keeping habits.

Loans are the major criteria that determine the fate of personal finance of any individual or an organization.  Loans are quick money routes that help to climb some difficult financial ladders; however, too much of loans than which can be supported by one’s personal finance can kill every chances of financial growth.

Being careful to get loans within affordable interest is quite important.  The best of personal finances are those without any kind of loans; however, home loans can be a form of investments, provided you get them at affordable rates because with the growing rates of real estate, you can never purchase an asset until you have saved enough.  The equity that will build up on your real estate properties can contribute to the compensation for the interest rates that you pay in extra for your loans!

However, all loans cannot be investments.  Proper management of loans combined with a balanced investment in insurance, followed by calculative monitoring your stocks and above all duly paid taxes are the main characteristics for the success of any personal finance story.