The Role of an Effective Financial Planning Process in Connecting Financial Behaviour to Life Satisfaction

In an era of increased living expenses and financial uncertainties, the management of personal finance has become a central concern for everyone to achieve economic security and life satisfaction. Material resources alone can’t guarantee happiness or individual well-being. It is the effectiveness of the financial process with which individuals plan, implement, and review their financial goals that improves the quality of life. A persistent gender gap exists in the financial literacy level and participation among Indian women. These gaps are more visible in Northeast India, where women’s ability to convert sound financial behaviour into well-being is constrained by limited exposure to structured financial education. This study aims to examine the mediating effect of the Effectiveness of the Personal Finance Planning Process (EPFPP) in the connection between Personal Finance Planning Behaviour (PFPB) and Quality of Life (QoL) among female government school teachers in Sivasagar District, Assam. The researcher has employed a descriptive and analytical research approach for the investigation. 388 respondents have been selected for the study using stratified random sampling. Partial Least Squares Structural Equation Modelling (PLS-SEM) has been used for analysis. The analysis reveals that PFPB has a substantial direct impact on both QoL and EPFPP, while EPFPP partially mediates the association between PFPB and QoL. The findings also indicate that although sound financial behaviour directly improves life satisfaction, its impact is amplified when supported by a systematic and effective planning process. The study enhances the behavioural finance literature by demonstrating that women’s quality of life improves not merely through financial literacy, but through the consistent and effective execution of financial plans.