Scribd
Upload
18 views12 pages

Financial Literacy

Uploaded by

nitesh8019nkk
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
18 views12 pages

Financial Literacy

Uploaded by

nitesh8019nkk
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
You are on page 1/ 12

FINANCIAL

LITERACY
Topic : Financial Planning
Presenters: Prateek Sinha: 254101265
Aniket Gajbhiye: 245101319
Siddharth Samal: 245101345
Siddhant Sharma: 245101379
Mohammad umar: 245101263
FINANCIAL PLANNING
Financial planning is the process of setting
financial goals and creating a strategy to
manage income, expenses, savings, and
investments to achieve those goals effectively.
It is the organized process of evaluating one’s current
financial situation and preparing a roadmap to meet
future financial needs and objectives.
IMPORTANCE OF FINANCIAL
PLANNING PLANNING
Financial planning helps individuals and businesses set clear, realistic
financial goals. Whether it's saving for retirement, buying a home, or
expanding a business, having a structured plan makes it easier to work
towards these objectives in a focused manner.

A well-organized financial plan enables better control of spending. It


helps allocate funds efficiently across various categories, ensuring
that necessary expenses are met while avoiding overspending or
accumulating unnecessary debt.

Financial planning includes risk management, such as insurance


planning, which can protect against unexpected events like illness,
accidents, or property loss. This helps reduce the financial impact of
emergencies and creates a safety net.
Financial planner
A financial planner is a professional who helps individuals
and businesses create strategies to manage their
finances and achieve long-term financial goals. Their work
typically covers areas like budgeting, saving, investing,
retirement planning, insurance, tax strategy, estate
planning, and managing debt.
How a Financial Planner Helps You Achieve Goals

Short-Term Goals: Building an emergency fund, saving for


a vacation, or managing debt.

Medium-Term Goals: Saving for a home, children’s


education, or starting a business.

Long-Term Goals: Retirement planning, legacy building,


and estate management.
PRINCIPLES OF GOOD
FINANCIAL PLANNING
Set Clear Goals: Establish specific, Create a Budget: Track income and expenses
measurable financial goals that align with to ensure spending aligns with your financial
your life priorities and guide your financial goals, preventing overspending and debt
decisions. accumulation.

Build Emergency Fund: Save 3-6 months’ worth Diversify Investments: Spread investments
of living expenses for unexpected events like job across various asset classes to reduce risk and
loss or medical emergencies. improve long-term financial stability and growth
potential.
FACTORS AFFECTING IT

CLEAR INCOME AND RISK


GOALS CASH FLOW MANAGEMENT
Short-term goals: E.g., A stable and sufficient income is Adequate insurance
buying a car or building an critical for effective financial coverage (health, life,
emergency fund. planning. property) protects against
unforeseen events.
Understanding your cash
Long-term goals: E.g., saving
flow helps in identifying Emergency funds ensure
for retirement, children's
surplus or deficit for saving liquidity during unexpected
education, or home
or investment. crises.
ownership.
WHAT ARE FINANCIAL GOALS?
A Foundation for Financial Success
Financial goals are specific objectives that
guide how you manage your money.

They help you focus your resources on


achieving key milestones in your life.

Examples: Saving for a vacation, buying a


car, planning for retirement.
STEPS TO ACHIEVE FINANCIAL GOALS?
Assess Your
1 Financial Situation

Set Clear and


2 Specific Goals

Prioritize Your
3 Goals

Create an Action
4 Plan

5 Track and Adjust


TYPES OF FINANCIAL GOALS

Short-Term Medium-Term Long-Term


Goals: Goals: Goals:
Timeline: Less than 1 Timeline: 1–5 years. Timeline: Over 5 years.
year.
Examples: Saving Examples: Buying a
Examples: Building an ₹3,00,000 for a car or house, building a
emergency fund, paying ₹5,00,000 for retirement corpus of ₹1
off credit card debt, or postgraduate studies. crore, or funding a
saving ₹20,000 for a child's education.
vacation.
REAL LIFE EXAMPLE:
PLANNING TO BUY A CAR
Financing Options
Research car loans with low interest
rates.
Aim for an EMI that fits within 15–20% of
your monthly income.

Track Progress
Monitor savings every 3–6 months to
ensure you’re on track.
Adjust contributions if income increases
or unforeseen expenses arise.
Budget & Adjust
Cut discretionary expenses (e.g., dining out
or unnecessary shopping).
Allocate the saved amount toward the car
fund.

Set Monthly Savings


Divide the target amount (₹2,00,000) by the
number of months (36).
Savings Goal: ₹5,556/month.

Set The Goal


Target: Buy a car worth 6 lakhs in 3
years.
Down Payment: 2 Lakhs
Loan: 4 Lakhs (TBP in 5 Yrs)

You might also like