Personal Financial Planning
Personal Financial Planning
Planning
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Many individuals only
realize the value of
financial security when
unforeseen circumstances
hit them.
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Because of our experience
during the pandemic, many
vloggers, bloggers, and TV
personalities now promote
financial literacy.
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People are now encouraged
to diversify their sources of
income, save enough to
cover several months of
hardships, and secure their
assets.
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As a student, even though you
still have limited finances, you
must learn to manage your
finances. It is necessary for
attaining your overall life
goals.
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ROADMAP TO FINANCIAL FREEDOM
Financial freedom is the financial end goal of every individual. Financial
freedom means having enough money to cover daily expenses, afford a
comfortable lifestyle, and pay all debts and obligations. It entails control
over your own money. Unfortunately, many people still do not know how
to start and achieve this.
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ROADMAP TO FINANCIAL FREEDOM
Below is a roadmap to your financial freedom. Now, consider the
obstacles you may encounter to achieve financial freedom. Write these in
the space provided.
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QUESTIONS TO PONDER
1. How do these obstacles affect your end goal, which is financial freedom?
2. How can you overcome the obstacles you have enumerated?
3. In what way/s does a financial plan help one achieve any financial goal?
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At the end of this lesson, you should be able to do the following:
● Enumerate the steps in personal financial planning.
● Create a personal financial plan.
● Realize the importance of personal financial planning by
applying various money management philosophies.
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Does financial planning guarantee the
achievement of financial freedom?
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● the fundamental knowledge of
an individual regarding the
management and use of
FINANCIAL LITERACY
his/her money
● the basic foundation of your
relationship with money
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PERSONAL FINANCIAL PLANNING
systematically
brainstorming ideas to setting your personal
identify possible courses of financial goals and the most
action to achieve financial feasible way to achieve them
goals
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PERSONAL FINANCIAL PLANNING
a comprehensive document
that includes one's financial
goals, savings and
PERSONAL
FINANCIAL PLAN
investments, a list of
expenditures, and debts
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Budgeting your funds
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Budgeting your funds
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HOW CAN AN INDIVIDUAL USE FINANCIAL PLANNING TO
IMPROVE HIS/HER CURRENT FINANCIAL SITUATION?
Answer area
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PERSONAL FINANCIAL PLANNING
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PERSONAL FINANCIAL PLANNING (STEPS)
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PERSONAL FINANCIAL PLANNING (STEPS)
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PERSONAL FINANCIAL PLANNING (STEPS)
IDENTIFY YOUR
FINANCIAL RESOURCES
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PERSONAL FINANCIAL PLANNING (STEPS)
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PERSONAL FINANCIAL PLANNING (STEPS)
IMPLEMENT YOUR
FINANCIAL PLAN
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PERSONAL FINANCIAL PLANNING (STEPS)
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PERSONAL FINANCIAL PLANNING
(IMPORTANCE)
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MONEY MANAGEMENT PHILOSOPHIES AND
PRINCIPLES
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MONEY MANAGEMENT PHILOSOPHIES AND
PRINCIPLES
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MONEY MANAGEMENT PHILOSOPHIES AND
PRINCIPLES
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HOW DO YOUR MONEY MANAGEMENT PHILOSOPHIES
2 AFFECT YOUR FINANCIAL PLANNING? EXPLAIN YOUR
ANSWER BY PROVIDING AN EXAMPLE.
Answer area
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The Philippines to Further National Financial Literacy
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The Philippines to Further National Financial Literacy
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The Philippines to Further National Financial Literacy
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● Financial planning refers to the process of identifying ways and
strategies to achieve the financial goals set by an individual.
● Personal financial planning involves setting your financial goals and
identifying the possible means, including different courses of action
to acquire, spend, save, and invest funds to attain your financial
goals.
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● A personal financial plan is a comprehensive document that includes
one’s financial goals, savings and investments, a list of expenditures,
and debts.
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● The concept of money management is one of the factors to consider
when you want to implement your financial plan successfully.
Although there are different philosophies and principles in money
management, you can create one most suitable for your goals.
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True or False.
True False
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True or False.
True False
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True or False.
True False
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True or False.
4. An individual needs to assess and evaluate the financial
plan he/she has prepared to ensure that the strategies
appropriately fit the goals.
True False
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True or False.
True False
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Answer the following questions.
Answer area
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Answer the following questions.
Answer area
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Assume that you are a Registered Financial Planner. Answer the
following questions in NOT MORE THAN five sentences.
Anna is a mother of two children aged 5 and 2, respectively.
Her husband is the only one working for their family, with an
annual income of ₱600,000. Based on the previous month,
their monthly expenses amounted to ₱36,000. Their household
does not have any existing loans. According to Anna, their
ultimate goal is to build a house of their own. What advice
would you give Anna regarding her possible strategies to reach
their goal as a financial planner?
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Read the following situations. Cite one of the money management
philosophies and use it to provide sound financial advice. Aside from the
philosophies presented in this lesson, you also have the option to
develop your own.
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Anna hired you to become her financial planner. She is a
mother of two children aged 5 and 2, respectively. Her
husband is the only one working for their family, with an
annual income of ₱600,000. Based on the previous month,
their monthly expenses amounted to ₱36,000. Their household
does not have any existing loans. According to Anna, their
ultimate goal is to build a house of their own. What advice
would you give Anna regarding her possible strategies to reach
their goal?
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Answer area
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Matthew is a BPO agent. Although contractual, his monthly
salary amounts to ₱35,000. He is single and has no
dependents. Because of this, he is known to be a one-day
millionaire during paydays and, afterward, acquire loans from
his colleagues, especially during month-end. All-in-all, his
liabilities summed up to ₱150,500. With his current situation,
what should be his ultimate goal? How would this goal affect
his financial health?
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Answer area
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