Personal financial planning is the process of managing your money to achieve personal economic satisfaction.

1. Mark Kolta
DEVELOPING PERSONAL
FINANCIAL GOALS

2. Personal Financial Planning
What are some major personal financial issues that
individuals and families encounter in their lives?
* major acquisitions (car, house)
* insurance claims
* bankruptcy
5 major areas of personal finance:
1. Management and acquisition of assets
2. Borrowing: credit cards and consumer loans
3. Insurance
4. Investments
5. Retirement

3. What is personal financial
planning?
Personal financial planning is
the process of managing your
money to achieve personal
economic satisfaction.

4. Rewards of Financial Planning
1. Maintain and
improve our
standard of living -
the necessities,
comforts and
luxuries that we have
or desire.
.

5. .. continue..
Rewards of Financial Planning
2. Control
consumption
patterns to live well
today and tomorrow!
Average
propensity to
consume - % of
each dollar of
income that is spent
rather than saved.

6. .. continue..
Rewards of Financial Planning
3. Accumulate wealth.
Personal financial
planning helps us
direct our financial
resources to the
most productive
areas

7. Benefits of a Plan
A financial plan helps people:
 live within their income
 identify financial priorities
 allocate funds to meet expenses
 meet financial emergencies and reduce credit
use
 reduce uncertainty and conflict about financial
affairs
 gain a sense of financial independence and
control
 save and invest to reach financial goals

8. FINANCIAL PLANNING PROCESS
Determine current financial situation
 Develop financial goals
 Identify alternative courses of action
 Evaluate alternatives
 Create and implement financial plan
 Re-evaluate and revise the financial plan

9. DEVELOPING PERSONAL
FINANCIAL GOALS
 Types of financial goals
 Timing of goals
 Goals of different financial needs
 Goal-setting guidelines

10. INFLUENCES ON PERSONAL
FINANCIAL PLANNING
 Life situation and personal values
 Economic factors
 Market forces
 Financial institutions
 Global influences
 Economic conditions

11. OPPORTUNITY COSTS AND THE
TIME VALUE OF MONEY
 Personal opportunity costs
 Financial opportunity costs
 Interest calculations
 Future value of a single amount
 Future value of a series of deposits
 Present value of a single amount
 Present value of a series of deposits

12. ACHIEVING FINANCIAL GOALS
 Components of personal financial planning
 Obtaining
 Planning
 Savings
 Borrowing
 Spending
 Managing risk
 Investing
 Retirement and estate planning
 Developing a flexible financial planning
 Implementing financial plan

13. Thanks