personal finance & personal budgeting by salum awadh

8/13/2019 Personal Finance & Personal Budgeting by Salum Awadh

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PERSONAL FINANCE &BUDGETING

“Where it ALL begins”

Presented by

Salum Awadh

Business & Financial Consultant

10th August 2012



What will be covered? What is Personal Finance?

Context of discussion

Key components of personal finance

Personal budgeting

Challenges we face in achieving better personal finance management

What needs to be done

A simple process for developing your personal financial plan



Context

Current inflation at 17.2%Less than 20% of Tanzanians are formally

bankedInsurance penetration is less than 10%Social security/pension coverage is 3% or less

Tax evasion is unlikely (PAYE, VAT)Default is very high (credit reference bureau)Informal borrowings (highly expensive &

highly risky)

Limited understanding of investmentopportunities and how to invest (equitymarkets, debt markets, other investments)Low or lack of savingsLegal compliance and how it fails



Personal income

• Salary (about 3million people inthe formal sector)

• Personal business(more than 2.7million ininformal sector)

• Governmentsupport “NONE”

• Terminal Benefits

Budgeting

• What you spendon

• How you spend• How you plan

Taxation

• Income tax• Withholding tax• Property tax• VAT• etc



Personal budgeting

A financial plan indicating yourincome, expenditure, and savings

You can use simple tools suchas excel sheet, pen&paper, ipad,etc



Simply……..

What youearn

• How much

Where youspend on

• Fixed expenses• Debt repayment• Non-basic

Futureplans

• Retirement• Acquiring assets• etc

Surplus/deficit

• How you deal with deficit



Challenges for personal finance

planning

Limited knowledge on personalfinanceLack of enough public awareness

on personal financeLack of enough advisory servicesNot taught in schoolSome parents being wrong “role

models” Lack of personal drive to learnHigh dependence ratio (can’t

save)



• How much you earn/you get from your benefits

• What you own• What you owe

Self-

assessment/family

• Retiring? Getting a job? Investing?• Buying a property?• Paying tuition fee?

Setting financialgoals

• How to increase your income• How to cut costs• Where to invest?• etc

Develop a personalplan

• Discipline Implement

• MonthlyM&E

Simple process of developing personal financial plan



For your personal finance &investment advise

Salum Awadh

Email: [email protected]

www.ssc.co.tz

Mobile: +255 786 092920 / 656 006 106

mailto:[email protected]

http://www.ssc.co.tz/

http://www.ssc.co.tz/

mailto:[email protected]

personal finance & personal budgeting by salum awadh

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