Effective financial planning is among the life skills that allow people to manage their finances successfully, protect themselves against unexpected changes and challenges and fulfill their financial goals in due time. In today’s world of dynamic economic processes, it is necessary to adopt an approach to handling one’s financial affairs as it contributes greatly to stability, stress reduction, and financial self-reliance. First, it is important to understand one’s financial situation and analyze personal finances. In other words, a well-established budget should reflect income levels and expenses. The role of an appropriate budget cannot be overstated as it allows a person to handle his or her finances effectively. To illustrate, Tori…