Scribd Logo
Upload

Welcome to Scribd!

  • 34 views

    Review of Personal Finance

    Uploaded by

    Yokonichi Oshima
    The document discusses personal finance strategies for long-term financial security. It recommends setting short-term and long-term goals, creating a budget, building an emergency fund, paying off debts, saving, and investing for retirement. Specific tips include devising a spending plan, paying yourself first by setting aside savings, reducing expenses like dining out and subscriptions, and borrowing smart by researching different loan options. The overall message is that financial literacy and planning enables one to better manage their money and build capital over time.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Review of Personal Finance

    Uploaded by

    Yokonichi Oshima
    34 views40 pages
    The document discusses personal finance strategies for long-term financial security. It recommends setting short-term and long-term goals, creating a budget, building an emergency fund, paying off debts, saving, and investing for retirement. Specific tips include devising a spending plan, paying yourself first by setting aside savings, reducing expenses like dining out and subscriptions, and borrowing smart by researching different loan options. The overall message is that financial literacy and planning enables one to better manage their money and build capital over time.

    Original Title

    M-L1.pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses personal finance strategies for long-term financial security. It recommends setting short-term and long-term goals, creating a budget, building an emergency fund, paying off debts, saving, and investing for retirement. Specific tips include devising a spending plan, paying yourself first by setting aside savings, reducing expenses like dining out and subscriptions, and borrowing smart by researching different loan options. The overall message is that financial literacy and planning enables one to better manage their money and build capital over time.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    34 views40 pages

    Review of Personal Finance

    Uploaded by

    Yokonichi Oshima
    The document discusses personal finance strategies for long-term financial security. It recommends setting short-term and long-term goals, creating a budget, building an emergency fund, paying off debts, saving, and investing for retirement. Specific tips include devising a spending plan, paying yourself first by setting aside savings, reducing expenses like dining out and subscriptions, and borrowing smart by researching different loan options. The overall message is that financial literacy and planning enables one to better manage their money and build capital over time.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 40

    Review of Personal Finance

    Money - any item that is


    generally accepted as payment
    for goods and services and
    repayment of debts.
    Money
    Personal Finance is about managing money,
    how much is earned, how much is spent,
    and saved based on personal choice and
    preference.

    It is important because one should be


    financially literate to look for
    opportunities and be aware of the risks.
    It is important because one should be
    financially literate to look for opportunities
    and be aware of the risks.
    It affects the quality of life and the direction
    to pursue.
    It is a factor on your personal growth and
    the future of the family.
    Focus on the Strategies for long
    Term Financial Security

     Set short term and long term goals


     Create a Budget
     Build an Emergency Fund
     Pay off Debts
     Save
     Invest for Retirement
     Borrow smart
    Starts with a Goal.
    Short term goal
    Long term goal
    No Goals and no plans ......
    It is just
    • The motivation or reason for saving money
    • Money is split into several different
    accounts or sub-accounts for a specific
    savings goal
    • Makes it easier to visualize the progress of
    investing per account and prioritizing one’s
    goals
    Devise a Family
    It is setting a realistic smart financial
    goal focusing on spending and saving

    It is cash and money management


    Analyze your financial situation
    Be aware of your finances
    Cut cost
    Gain control of your expenses
    AND
    Start to SAVE

    Money to invest
    Prepare Budget or a Spending Plan
    DON’T OVERSPEND YOUR
    No Budgeting and Overspending
    Suggested Spending Plan
    How Do You Budget?

    Budgeting will help you plan your expenses


    Cash Flow is all about priorities
    Needs - things that you must pay no matter
    what., food, housing, transportation costs,
    insurance

    Wants – are everything else, cable tv,


    restaurant meals, concert tickets, books,
    clothing beyond the basic
    Create an Emergency Fund
    “ Pay yourself First”
    Set aside money for unexpected
    expenses.
    3 to 6 months worth of living
    expenses.
    Complete funding your ‘rainy day
    fund’
    Pay off Debts
    Manage your credit cards
    • Excessive Debts = Excessive
    Expenses
    • Best strategy: Borrow as little as
    possible at the lowest interest rate
    available then pay it off as quickly as
    possible
    Start Saving
    • Savings is the part of income which is
    not spent on current consumption
    Old Savings Equation
    Savings = Income – Expense

    Income – Savings = Expense


    Is Saving Enough?
    SAVINGS is just the start.
    Factors affecting savings:
    low interest rates
    inflation
    taxes
    Manage your

    To increase your
    In doing this you have to adjust
    your current way of living
    Suggestions on Reducing Expenses
    Brew your coffee
    Drink water instead of soda
    Eliminate bottled water
    Stop smoking
    Eat at home
    Minimize alcohol consumption
    Commute instead of using car
    Reduce utilities cost
    Cell phones/gadgets
    Internet/cable TV
    Newspaper /magazine subscription
    Example:
    Starbucks Coffee : P150/cup x 5days/wk=
    P750 x4 = P3K/mo x12 = P36,000/yr
    If you save and invest at 5%/yr
    After 30 years? How much is it worth?
    P 2.67M

    at 10%

    P 7.142M
    Smoking:

    1 pack PM = P120 x7/wk= P840 x 4 =


    P3,360/mo x12 = P40,320/yr
    If you save and invest at 5% interest
    for 30 years, how much is the money worth?
    Borrow Smart
    People borrow money to finance your
    children’s education, a new house, or
    starting a business, study the pros
    cons of the capital available to you.
    Check the interest rates, of banks,
    credit cards, credit unions, SSS, etc
    Build Your Capital
    • Spend Less
    • Earn More
    • Pay Off Debts
    • Invest
    Once you reach your long term
    You can retire and enjoy a new

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy