Scribd
Upload
10 views16 pages

CH 1 Introduction

Uploaded by

dipalharia2911
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
10 views16 pages

CH 1 Introduction

Uploaded by

dipalharia2911
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 16

CH 1

INTRODUCTION,
FINANCIAL
PLANNING &
“Managing Money Wisely”

BUDGETING
INTRODUCTI
ONFinancial planning is the
systematic process of defining
one's financial goals, evaluating
their current financial situation
and creating a structured plan to
achieve those objectives
FINANCIAL
PLANNING
Financial planning is the
process of managing
finances through
budgeting, saving,
investing, and preparing
for future expenses
COMPONENTS OF FINANCIAL
PLANNING
• CASH FLOW MANAGEMENT
• INVESTMENT
MANAGEMENT
• INSURANCE ASSESSMENT
• TAX PLANNING
• ESTATE PLANNING
• RETIREMENT PLANNING
IMPORTANCE OF FINANCIAL
PLANNING

• GOAL ACHIEVEMENT
• FINANCIAL SECURITY
• DEBT MANAGEMENT
• RESOURCE
OPTIMIZATION
• RISK MANAGEMENT
• TAX EFFICIENCY
• RETIREMENT
PLANNING
NEED OF FINANCIAL
PLANNING

• CHANGING LIFE
STAGES
• UNCERTAINTY
• FINANCIAL GOAL
• INCOME MANAGEMENT
• WEALTH BUILDING
• DEBT REDUCTION
• LEGACY PLANNING
• INFLATION
BUDGETIN
GFirst of all, let's start with the most basic: Budgeting or making
a budget.

Budgeting is the main key to successful financial


management. This involves managing and allocating money
wisely to meet your financial needs and goals. There are
several simple steps in creating a budget:

Identify Income Calculate Expenses Set Priorities


PERSONAL
BUDGET
Personal budgets are
usually created to help an
individual to control their
spending and achieve their
financial goals.
FAMILY BUDGET

A family budget is a
statement which shows
how family income is
spent on various items of
expenditure on
necessaries, comforts,
luxuries, and other
cultural wants.
BUSINESS
BUDGET
A business budget is
a financial plan that
estimates an
organization's
revenue and
expenses over a
specific period of
time.
NATIONAL
BUDGET
The national budget is a
financial plan created by
a government that
outlines its expected
revenues and
expenditures for a
specific period, usually a
year.
STEPS TO PREPARE A
BUDGET
1.SET FINANCIAL GOALS
2.ASSESS CURRENT FINANCIAL
SITUATIONS
3.CREATE A FINANCIAL PLAN
4.SET A BUDGET
5.TRACK EXPENSES
6.IDENTIFY INCOME SOURCES
7.CATEGORIZE EXPENSES
8.ALLOCATE FUNDS
9.EMERGENCY FUNDS
10.REVIEW & ADJUST
STEPS TO PREPARE A
BUDGET
1.SETTING GOALS
2.ASSESSMENT OF
CURRENT FINANCIAL
SITUATION
3.RETIREMENT
PLANNING
4.EDUCATION FUNDING
5.DEBT MANAGEMENT
6.INVESTMENT
STRATEGY
7.BUDGETING & CASH
FLOW MANAGEMENT
8.RESULTS
BUDGET SURPLUS
• EARNING MORE THAN SPENDING
• POSITIVE FINANCIAL POSITION
• SAVING & BENEFITS
• FINANCIAL GOALS
• FINANCIAL SECURITY
•
•
FINANCIAL MANAGEMENT
PLANNING FOR THE FUTURE
BUDGET
DEFICIT
• NEGATIVE FINANCIAL OUTCOME
• SOURCES OF INCOME
• TYPES OF EXPENSES
• DEBT ACCUMULATION
• IMPACT ON FINANCIAL HEALTH
• ECONOMIC & FISCAL DEFICIT
• BALANCING ACT
• VARIANCE ANALYSIS
SOURCES FOR MEETING
DEFICIT
• INCREASE INCOME
• REDUCE EXPENSES
• USE EMERGENCY
FUNDS & SAVINGS
• BORROWING
“Managing Money Wisely”
THANK
YOU

You might also like