You are trapped in a twisted labyrinth with many blind curves, dead ends, and crazy turns. You wish you had a compass to guide you or someone yelling from above, giving you guidance! In the same way, your personal finances can be a complete maze. If you liken the compass to a personal financial plan, would not your life be much simpler?Individuals and their families normally have goals that require money to achieve. It may be routine things, like planning to set aside money for university education for their children or having a solid retirement plan where they will get a set income each month to cover expenses.The financial stress that will come about due to any of the above circumstances happening (these are just a few listed out) can be avoided by having a sound and solid financial plan. A comprehensive plan to budget and save and not get fazed by an emergency can help with focus on allocation of resources to achieve goals in a systematic way. Individual and family goals have to be established and agreed on first. Then they have to be prioritized in a logical way. Once this is done, you can work on a plan on how to achieve those goals in the order you have listed them down.Having a financial goal or dream is often the cause of conflict and stress. Some individuals have very limited income and, hence, are often not able to achieve their goals. What is allocated to daily consumption will obviously not be available for any future use. If you decide to go on a vacation that is not planned, it may have an effect on your retirement fund. Some goals are complementary to each other and are also interdependent.Why is it important to have a personal budget? If you want to live a life without stress and achieve your goals and make your dreams come true, you have to learn to save and cut out on the unnecessary.