What Are the Key Areas of Personal Financial Planning? 

One of the biggest reasons we fail to secure our financial future is a lack of knowledge about the procedures that must be done. We do what we believe is right, yet this may not always be adequate. Thus, it is critical to understand the major components you should focus on while developing a financial road map. A CPA firm in Poughkeepsie, NY, can help you with your financial planning, so schedule a consultation today. 


The need for quick cash might arise at any time. It might be anything as insignificant as a vehicle breakdown or catastrophic as losing your job. Such unexpected circumstances, however, may be handled if we have sufficient funds to satisfy the demand. As a general guideline, your emergency fund should be three to six months' worth of costs. 

Debt products such as liquid funds are good solutions for storing money set aside for emergencies. And here are three arguments to back that up: 

  • First, liquid funds provide somewhat higher yields than savings accounts despite no guaranteed return. 
  • Second, because these funds are very liquid, you may withdraw your cash within seven days. 
  • Third, they have low credit and interest risk, so your money is secure. 


We often confuse investing with saving or consider them to be synonymous. While saving is the act of putting money away, investing is the act of depositing money or acquiring assets such as stocks, bonds, mutual funds, and so on in order to increase your money. 

Regarding investment, mutual funds are a wonderful choice if done correctly. However, while investing in mutual funds, it is important to choose the correct fund for your investment; otherwise, it may be counterproductive. As a result, it is critical to make your investment based on your investment requirements and time horizon. 

So, the general guideline is to convert your ambitions into financial objectives and establish a deadline for achieving them. Then select a mutual fund that corresponds to your investing horizon.

What funds should one choose based on their financial objectives?

  • Short term goals 

Short-term goals are those that must be met within three years. There are several things for which cash must be arranged within this timeframe, ranging from saving for a trip to saving for a phone.

  • Mid-term goals 

Mid-term objectives are those that you set for yourself that must be completed within three to five years, such as a down payment on the house.

  • Long term goals 

Long-term objectives are defined as milestone events such as retirement, children's education, and marriage, i.e., goals with a timeline of at least five years.