Everyone want to be ensured of their future especially in the aspect of finance. Money and liquidity is very important to live a decent and normal life today. Personal finance allows anyone to experience a good life in the present and at the same time prepares the future in terms of financial planning. Personal finance involve principles, theories, and practices in finance in making decision pertaining to one's finances. Decisions involving purchases, expenditures, savings, obtaining a loan, debt management, and budgeting are covered by the concept of personal finance.

There are at least five key steps in personal finance. Since personal finance is akin to financial planning, the goals and objectives as well as the actual practice of personal financial planning is very dynamic. An example of the aspect which personal finance covers is the retirement plan. Retirement, as many observes, is a moving target. One must carefully plan his or her retirement to ensure that upon the period when he or she has to stop working, there is enough cash savings, pension, and financial benefits available to spend for the chosen post-retirement lifestyle. These five vital steps in financial planning must be observed from the beginning to the end.

First, one should assess his or her financial condition. This involves computing the monthly income, expenses, and possible savings. It also includes the assessment of the values of movable and immovable properties taking into consideration their appraisal and depreciation. This part of personal finance focuses on the present.

Second, goals must be set and determined. Based on the present financial condition, a person must come up with an attainable goal for which he or she will have to work on financially. This step in personal finance focuses on the future. It calls the person to picture out himself or herself in the future living one's chosen lifestyle.

Third, a proper, comprehensive, and doable plan must be made. This provides for the particular acts and changes one has to undergo to ensure that the goals will be realized. This part of personal finance calls for a serious commitment because at this point, one might realize that he or she has to cut spending to save more money and work harder to increase one's salary. This pertains to changes in lifestyle and spending habits.

Fourth, a strong will and determination to execute the plan must be had. No matter how perfect a plan, achievable the goals, and complete the needed resources to attain the objectives of personal finance, it the person does not have the will, courage, and determination to execute the plan, everything will still go to waste.

Fifth, regular monitoring and assessment are important to ensure one remains on the right path of achieving the goals of personal finance. Possible adjustments and changes must be made along the course of execution to remedy any defect or to avail of the opportunity to hasten the achievement of the goals and objectives of personal finance.

These steps in personal finance are very important to ensure that the person will not frustrate himself or herself of exerting every effort but still ends up at the losing end. Personal finance is not a simple matter. It requires precision, skills, and advanced information to ensure that the plan suits the current social conditions and one's personal situation.