In personal finance planning theory and practice, an individual or a family manages its assets effectively to achieve the desired goals. The basic aim of personal financial planning theory is to generate income and certain amount of this income is allotted to meet the expenses. In personal finance, some action is also taken to create the cash reserves and other assets for future. Many resources are used to help in the process of personal finance planning theory. The basic aim of personal finance planning theory is to manage the flow of money in the household. Usually, the income is from a salary or wages from a job. Other forms for generating income can also be used. All the income that comes from different interest earned from the investment, child support or alimony and other forms of compensation qualify as income. If you really want to understand how to handle your own economy, along with income, you should also understand the different kinds of expenses associated with the household. There are two different kinds of expenses that you have to do, fixed expenses and variable expenses. In fixed expenses, car payments, mortgage payments, rent and any outstanding loans can be included.

These expenses are on monthly utility bills, food and bank service charges are included in the variable expenses. After identifying the income and the expenses, now you should make a budget. By determining that how much money would come and how much would be spent to meet the obligations you have already accomplished this process for some extent. However, apart from these things, you should also save some money to meet some unexpected expenses. These unexpected expenses are to be auto repairs etc. Now, you should determine that how much money is remaining, you should allocate some part of this money for entertainment purposes. The remaining money should be saved in some bank account for future obligations.
Personal finance planning theory is a study on management of assets and liabilities in an efficient and effective way.

Let’s start by saying that financial consulting isn't for everybody. This is the type of service offered to individuals, corporations, and government agencies by certified financial consultants who have ten to fifteen years of practical experience and who have accounting and financial planning background. Companies or organizations that require expertise in finance, insurance, accounting, and other aspects related to finance usually hire financial consultants. Before they will be certified, they will need to successfully complete an education program and an examination to make sure that they have up-to-date and in-depth knowledge on latest business practices and theories. Basically, there are two types of financial consulting: personal and business. Although they deal mostly with finances and investments, the skills required for these two different roles are slightly varied. The goal for the consultant here is they should involve actively here for individual clients and practices every thing to help their individual clients so they can obtain maximum benefits from their financial resources with the lowest amount of risk possible.