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1010 Personal Financial Planning Overview

Personal financial planning involves managing money to achieve financial freedom and satisfaction. It includes creating formalized reports that summarize current financial conditions, analyze needs, and recommend future activities. Key components of financial planning are understanding personal values, life cycles, and setting common financial goals such as savings, insurance, and retirement planning.

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Hammed Tijani
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59 views13 pages

1010 Personal Financial Planning Overview

Personal financial planning involves managing money to achieve financial freedom and satisfaction. It includes creating formalized reports that summarize current financial conditions, analyze needs, and recommend future activities. Key components of financial planning are understanding personal values, life cycles, and setting common financial goals such as savings, insurance, and retirement planning.

Uploaded by

Hammed Tijani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Personal

Finance
Personal Financial
Planning
Overview
Personal Financial Planning – The process of managing your
money in order to achieve personal economic satisfaction or
financial freedom

Grow!
Personal vs Corporate Financial Goals
Financial Plan
• Formalized reports
• Summarizes
current financial
condition
• Analyzes financial
needs
• Recommends
future financial
activities
• Increases ability to obtain, use
Advantages of efficiently, & protect financial
resources
Financial Planning • Increase control over financial affairs
• Improves personal relationships
• Provides freedom
Personal Value & Life Cycle
• Adult life cycle – the stages in the family situation and financial
needs
• Life situation factors – Marital status, home size, & employment
• Major events in life – Graduation, marriage divorce, birth, career
change, & health changes
• Values – Ideas you feel to be correct, desirable, & important
Age
• 18-24
• 25-34
• 35-44
• 45-54
• 55-64
• 65 and over
Marital Status

• Single • Divorced
• Married • Widowed
• No other members
• Preschool Children
• Elementary &
Number & Age secondary
of Household schoolchildren
Members • College students
• Dependent adults
• Nondependent
adults
• Full time student
Employment • Not employed
Status • Full time employment
• Part time employment
• Get career training
Common Financial
• Create an effective financial
Goals & Activities recordkeeping system
• Develop a regular savings &
investment program
Common Financial
Goals & Activities
Continued
• Having an
emergency fund
• Getting appropriate
insurance coverage
• Create & implement
a flexible budget
Common Financial Goals
& Activities Continued

• Evaluate & pick investments


• Make and implement a plan for
retirements goals
• Create a will & make an estate
plan

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