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PRINCIPLES OF FINANCE

TOPIC:
FINANCIAL PLANNING AND
ITS OBJECTIVES
EFFORTS BY:

• Akansha
• Trisha Gandhi
• Kunjan Doshi
• Bhumika Sadija
• Pratidnya
• Sampada
INTRODUCTION

• Financial planning is the process of managing your finances in line with your
life goals.
• Life goals can include buying a home, managing your and your children’s
wellbeing, saving for their education or planning for your retirement.
• Process involves defines short-term and long-term goals and proritzing and
assessing current financial situation and commitments.
DEFINITION

• “Finance is that art as well as science of managing money, it is concerned


with each process, market, organisation and instrument involved in transfer
of cash among as well as in between government and business”.
NEED AND IMPORTANCE
• Here are 10 powerfull reasons why financial planning – with the help of an expert financial
advisor- will get you where you want to be:
• Income
• Cash Flow
• Capital
• Family security
• Investment
• Standard of living
• Financial understanding
• Assets
• Savings
• On going advice
OBJECTIVES

• To raise funds in a manner that the cost of capital is minimum.


• To ensure simplicity in capital structure .
• To ensure sufficient liquidity of funds .
• To provide adequate funds to business . Neither the funds should be short
nor in excess of the needs of business.
CHARACTERSTICS

• Optimum use of funds


• Cost control
• Foresight
• Liquidity
ADVANTAGES

• Advantages of financial planning:


• Cost control
• Cash flow management
• Improved debt management
• Accurate tax compliance
DISADVANTAGES

• Difficulty in forecasting.
• Difficulty in change.
• Problem in coordination

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