Is Financial Management necessary for me? Financial Management is for every one who cares for money. It is nothing but transformation from being needy to rich and from rich to wealthy. Tips on Personal Financial Planning/Management If you have EMI commitments, bring down total loan EMI (housing, vehicle) commitment to a level of not more than 25% of the total income Basic life insurance cover need not be more than 100-150 times of normal monthly expenses. If your family has unearned income (interest income, dividend income, rental income etc) which is substantially more than normal family needs, you may not really require insurance. Choose insurance plans with flexible options to take care of children's needs/ health care needs/ retirement in future. You can take a simple term insurance policy or Health Plus Life combo policy to cover risk and healthcare.. Even floater health policies for all family members (even upto 80 years) are now available with term insurance