Personal financial planning is an exercise an individual or a household performs regularly to manage their income, spending, savings, and investments to attain specific desired goals, including income for daily living now and in the future. This exercise helps you create wealth during your working life and allocate it prudently after you retire and your death. A plan allows you to consider and have a clear view of your financial situation, and with the assessment, you can make a plan. The plan creates a roadmap and discipline, which helps you steer through daily and unforeseen events without wavering until you achieve the goals. The ultimate purpose of financial planning is to develop saving and investment steps to generate financial self-sufficiency in your current and retirement living. Financial planning involves the following main interrelated categories which shape your financial foundation to attain goals and economic sufficiency.

1. Vision and Lifestyle.
2. Cash flow and debt management (Income and Spending).
3. Saving and Investing.
4. Tax Planning.
5. Risk Management and Insurance Planning.
6. Estate Planning.
7. Retirement Planning.

How to Invest in Treasury Bills and Bonds (T-Bills and T-Bonds) in Kenya

Kenya government Treasury bills bonds (T-bills and T-bonds) are investment instruments auctioned weekly by the Central Bank of Kenya (CBK) on behalf of the Government. The Government uses the instruments to borrow money from the public to finance its activities. Therefore, the investors become lenders to the Government and in return, the Government pays them interest and returns the principal upon maturity. T-bills have tenures of 91,182 and 364 days, while the terms for T-bonds are two years or more. All citizen and non-citizen individuals and organizations can buy Kenya T-Bills and Bonds. Buying and selling the securities is an online process. To participate, you visit https://dhowcsd.centralbank.go.ke/ or download the DhowCSD app on the Google Play store or Apple App Store to create a CSD account, https://www.centralbank.go.ke/dhowcsd/ and https://www.centralbank.go.ke/securities/treasury-bills/ to see guidelines and to:

1. Open a CBK DhowCSD Account and provide investor details.
2. Decide what to buy, how much and what price.
3. Complete and submit bids.
4. Obtain the T-bill and bond auction results.
5. Pay for your successful bids. This process is automatic, following the details you provided in (1) above.

Benefits of personal financial planning

Personal financial planning is an exercise an individual or a household performs regularly to manage their income, spending, savings, and investments to attain specific desired goals for now and in the future. The process also incorporates planning one's present and retirement lifestyles, such as what to do besides one's career, what to do in retirement, and how to finance all these lifestyles. Personal financial planning has several benefits, as follows:

1. It helps you think about your dreams
2. Allows you to analyze your current financial position
3. It helps you to be financially literate
4. Allows you to plan your income and expenses
5. Planning makes for better use of time and money
6. Planning enhances chances of success
7. Planning encourages effective debt management
8. Planning ensures you plan for retirement

In summary, personal financial planning ensures you have a financial and action roadmap; with a roadmap, you are more likely to have goals and steps to implement them. With a plan, your saving and investing will likely be successful in attaining typical personal financial goals such as having an emergency fund, child education fund, staying ahead of inflation, maximizing tax savings, estate and inheritance planning, having asset protection arrangements and creating a retirement income. When you have financial sufficiency, you can lead a life of contentment, prosperity, happiness, joy, health, peace, or whatever you desire.

People ask what is personal financial planning and how it differs from corporate financial planning. Personal financial planning is about what an individual or a household does to plan their finances, while corporate financial planning is about preparing a financial plan for a business entity. Personal financial planning is an exercise an individual or a household performs regularly to manage their income, spending, savings, and investments to attain specific desired goals for now and in the future. The process also incorporates planning one’s present and retirement lifestyles, such as what to do besides one’s career, what to do in retirement, and how to finance all these lifestyles. It essentially entails active identification and generation of income streams, allocating part of the income for current needs, wants, emergencies and other requirements and saving and investing to create wealth for comfortable current and retirement living. Planning should also look at managing different areas of life, such as estate planning, career, family, children’s education, body, mind, soul, enjoyment, friendships and public service. Planning aims to create a roadmap for navigating all these facets to arrive at the desired destination in an orderly manner.