Basics of Financial Management

1. Dr. C. Nithya
Assistant Professor
BASICS OF FINANCIAL
MANAGEMENT

3. Financial Management
• Financial Management is mainly concerned
with the proper management of funds

5. Personal financial planning typically involves creating a personal
budget, planning for taxes, setting up a savings account and
developing a debt management or recovery plan

6. TOOLS
TO
MANAGE
PERSONAL
FINANCE

7. BUDGETING
Budgeting is the process of creating a plan to
spend your money. This spending plan is
called a budget.

9. SAVINGS
Financial wellness starts by inverting the
equation of 'Income minus expenses
=savings' to 'Income minus savings =
expenses'.

10. SAVINGS - TYPES
For Risk Averse Investors
▪ Public Provident Fund(PPF)
▪ Post office time deposit Account
▪ Post office monthly income Scheme
▪ Post office RD
▪ National Savings Certificate(NSC)
▪ Sukanya Samriddhi Yojana
▪ Senior Citizen Savings Scheme
▪ National Pension Scheme

11. SAVINGS - TYPES
For Risk Taking Investors
▪ Shares
▪ Mutual Funds
▪ Gold

12. INSURANCE
Insurance is a tool to reduce the financial impact of
unforeseen events and to create financial security.

13. INSURANCE - TYPES
• Life Insurance
• General Insurance
Life Insurance – types
▪ Term plan
▪ Whole life insurance policy
▪ Endowment policy
▪ Unit Linked Insurance Policy (ULIP)
▪ Money back policy

14. INSURANCE - TYPES
General Insurance – types
▪ Health Insurance
▪ Home Insurance
▪ Travel Insurance

15. DEBT MANAGEMENT
Strategy that helps a debtor to repay or otherwise
handle their debt better

16. GOOD DEBT / BAD DEBT

18. REMEDIAL ACTIONS TO MANAGE DEBT

19. RETIREMENT PLAN
Retirement planning is the process of determining
retirement income goals and the actions and decisions
necessary to achieve those goals

20. REASONS FOR RETIREMENT PLANNING
▪ Medical Emergencies
▪ Inflation
▪ No state sponsored pension
▪ Nuclear family