Personal finance is an individual’s financial status. It’s about how much money you have, and how much you need. It is about managing your money – today and for tomorrow. Money is the currency on which all world economies function. Income – expenditure -bills- debts – savings: These are a fact of life. A constant for most is the endeavor to tip the scales in favor of savings.

Successful financial management includes planning and keeping records of income and expenditure, budgeting, balancing your check book, insurance and investments – whether in real estate, the share market, funds or any of the other available mechanisms. You cannot overlook the necessity of planning your savings, your tax savings and your retirement.

When reducing debt, one of the problems is getting frustrated that you can never have any fun while doing it. One way to help keep yourself motivated is to give yourself rewards for reaching specific goals. This reader wants to know how to go about setting up these rewards:

I have started to reduce my credit card debt and although it has been difficult, I am slowly getting it under control. Some people talk about rewarding yourself while reducing debt:

* How does one go about doing this?
* How do you choose a reward?
* Should it be a lot of small rewards or a big reward at the end?
* How do you determine what is appropriate as a reward?

I apologize for all the questions, but this is something that I would like to begin doing and I’m afraid if I start without a plan, the rewards will end up putting me back into debt.

how do you reward yourself when it comes to money goals you have and what recommendations would you give to this reader?