Personal financial planning is the process of managing your money to reach economic satisfaction. This process gives you control of your finances. By having a financial plan you enhance your quality of life and increase your satisfaction because economic uncertainties about your future needs and resources are minimized.

There are 6 steps to personal financial planning. They are:

#1: Determining where you stand currently with your finances

#2: Developing financial goals

#3: Strategizing different courses of action

#4: Evaluating your alternatives

#5: Creating and putting your financial plan into action

#6: Periodically reviewing the plan to see if it's working for you

Research has shown that people with their own financial plan save more money than those who haven't taken the time to develop a plan.