Using the Household Accounting Information for Personal Financial Planning

Abstract

           The economic and social survey of households of National Statistical Office found that the average household income and   expense are higher per month. As a  result, the household debt increased steadily until now which is due to three main reasons: (1) lack of financial knowledge (2) attitudes towards spending money improperly and (3) access to money source easily. Thus, a household must realize the importance of personal financial planning. The households do household accounting in order to summarize    personal income expense balance assets and liability. Then take the household accounting to plan the personal finance which will lead to the achievement of financial goals as follow: (1) the financial   planning for Security (2) the financial    planning for stability of life (3) the financial planning for wealthy, and (4) the protection and wealth management. Thus, the   person may be set financial goal varies according to their financial status.  Personal financial planning has taken the quality cycle to set the personal financial planning step. This can set guidelines on household accounting information to personal financial planning, which can be divided into five areas: 1) planning for the cash and liquidity assets 2) planning on personal credit 3) planning for the health insurance and 4) planning on personal investing, and  5) financial planning for retirement.