PERSONAL FINANCIAL MANAGEMENT by MikeJenny

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									PERSONAL FINANCIAL
   MANAGEMENT

       Week 1
              INTRODUCTION

 General overview
 Module assessment
     10 Class exercises        50%
     Personal budget            5%
     Personal Financial Plan   25%
     Test                      20%
     Total Assessment          100%
             Personal Financial
               Management

 Personal Financial Management is about
  enjoying our current lifestyle whilst setting
  something aside for our future lifestyle.

 To do this we need to plan ahead and set
  goals
         Why Set Personal Financial
                  Goals?
 Short Term to provide for:
      Education
      Overseas trip
      Car or boat
      Own business
      Purchase rental property
      Purchase shares
      Go to Olympic or some major sporting event
      Legitimately minimise taxation
        Why Set Personal Financial
                 Goals?
 Medium Term to provide for:
     Marriage
     Purchase of home
     Educate children
     Purchase investments property or shares
     Family holiday
     Larger car to accommodate family
     Provide security for the family
     Asset protection and succession planning
     Legitimately minimise taxation
        Why Set Personal Financial
                 Goals?
 Long Term to provide for:
 Financial independence in retirement
     Maintain value and purchasing power of capital
     Balance the timing of cash inflows and outflows
     Achieve an acceptable level of investment return
      on securities
     Legitimately minimise taxation
    Financial Life Cycle (pp42-45)

 Young single
 Young couple
 Young family
 Mature family
 Mature singles (separated, divorced etc)
 Retired persons
         Personal Financial Plan
              (pp98-100)
 Gather client data
 Establish goals and objectives
 Identify financial problems
 Prepare a set of written recommendations
 Implement the agreed-upon plan
 Review, Revise and maintain the financial
  plan
       Current Financial Situation

 What is your income? Where does it come from?
 What are your living expenses?
 Do you have a savings program?What are your
  debts?
 What insurance do you have/need?
 Do you have investments?
 Is taxation a problem?
 What are you doing about retirement?
      Identify Goals you want to
                achieve
 Short term

 Medium Term

 Long term
      Strategies to Achieve Goals


 Continue on existing course of action

 Expand on existing course of action

 Develop new course of action
     Implement Course of Action


 Focus efforts on achieving goals

 Get professional advice if needed

 Take action
                Review Progress

 Look at your progress regularly

 Check the progress you have made

 Make minor changes when needed

 Adjust plan to bring in line with new priorities

								
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