Personal Financial Plan for an Individual

Our client is Manager. Currently she is working as an associate Manager in PWC.

His details are as follows
Client name: Vaishnavi Alurkar
Dob 2/10/1997
City Pune
State Maharashtra
CLIENT’S LIFE GOALS
Financial goal of our client is listed down as follows in step 1. In step no. 2, all the financial
goals are further classified as Need or Desire.

STEP 1 STEP 2

Financial Goals Tag as Need or Desire

Emergency Funds Need

Debt Repayment Need

Travel Fund Desire

Buying A Car Desire

Retirement Planning Need

Children’s Education Need

Wealth Building Desire

Insurance Need

After completing step 1 and step 2, further task is to classify the financial goals as Short-Term
goals, Medium-Term goals and the Long-term goals. Therefore, in step no. 3, all this financial
goal is sub-categorized into short-term goal, medium term goal and the long-term goal
which will helps in better financial planning. Also, after categorizing the goals, next
important task is to prioritize each financial goal in each sub-category i.e., short-term,
medium-term and long-term goals.
STEP NO: 3 & 4
Categorization and prioritizing each financial goal of the client.

STEP 3 STEP 4

Financial Goals Priority

SHORT TERM GOALS

1
Emergency Funds

2
Debt Repayment

3
Travel Fund

MEDIUM TERM GOALS

1
Insurance

2
Wealth Building

3
Buying Car

LONG TERM GOALS

1
Retirement Planning

2
Children’s Education

Next step is to find out the present cost of all the financial goals. Hence step no. 5 will be to
assign present cost to each of the financial goal and number of years required to achieve
that particular goal.
 STEP NO 5:

STEP 3 STEP 4 STEP 5

Number Of Years to achieve

Financial Goals Priority Present Cost
the goal

SHORT TERM GOALS

1 1
Emergency Funds 4,07,000
2 3
Debt Repayment 3,50,000
3 2
Travel Fund 50,000
MEDIUM TERM GOALS

1 2
Insurance 1,00,000
2 20
Wealth Building 1,00,00,000
3 5
Buying Car 10,00,000
LONG TERM GOALS

1 25
Retirement Planning 1,00,00,000
2 20
Children’s Education 20,00,000

Step no. 6 involved to Find how much need to save and invest, where
to invest to achieve inflation adjusted goal costs in future. To
calculate inflation adjusted cost in future we will be using various
finance functions like PV, FV, PMT, RATE, NPER) and nominal rate of
return etc.
 STEP NO 6:

Number Of
Inflation Inflation Monthly
Tag as Need or Years to Present
Financial Goals Priority Adjusted Adjusted Cost Required
Desire achieve Cost
Rate =6% in Future Investment
the goal

SHORT TERM
GOALS

1 1 6%
Emergency Funds Need 4,07,000 ₹ 4,31,420.00 ₹ -35,951.67

2 3
Debt Repayment Need 3,50,000 ₹ 4,16,855.60 ₹ -11,579.32

3 2
Travel Fund Desire 50,000 ₹ 56,180.00 ₹ -2,340.83

MEDIUM TERM
GOALS

1 2
Insurance Need 1,00,000 ₹ 1,12,360.00 ₹ -4,681.67

2 20 ₹
Wealth Building Desire 1,00,00,000 4,29,18,707.20 ₹ -41,666.67

3 5
Buying Car Desire 10,00,000 ₹ 13,38,225.58 ₹ -22,303.76

LONG TERM GOALS

Retirement 1 25 ₹ ₹-
Planning Need 1,00,00,000 4,29,18,707.20 1,43,062.36

2 20
Childrens Education Need 20,00,000 ₹ 64,14,270.94 ₹ -26,726.13