Personal Financial Personal Financial PlanningPlanning

by Alyona by Alyona MelnikMelnik

Financial planning analysisFinancial planning analysisBudget structureBudget structurePersonal planning processPersonal planning processBudget optimization toolsBudget optimization tools

PlanPlan

Personal PlanningPersonal Planning: process of : process of managing your money to achieve managing your money to achieve personal economic satisfaction.personal economic satisfaction.

Personal Plan:Personal Plan: formalized report formalized report that summarizes your current that summarizes your current financial situation, analyzes your financial situation, analyzes your financial needs, and recommends financial needs, and recommends future financial activities.future financial activities.

Financial planning Financial planning analysisanalysis

Figure 1Figure 1. . Budget Budget structurestructure

To manage income and To manage income and expenses.expenses.

To create an awareness of To create an awareness of your current financial status.your current financial status.

To plan for the future by To plan for the future by developing goals and developing goals and devising ways to achieve devising ways to achieve those goals.those goals.

To provide a system of To provide a system of evaluation and revision for evaluation and revision for your financial progress.your financial progress.

The Role of Personal The Role of Personal Financial PlanningFinancial Planning

1.1. Sum up all expensesSum up all expenses

2.2. Divide expenses into Divide expenses into fixed and currentfixed and current

3.3. Plan future spendingPlan future spending

4.4. Write down all Write down all expensesexpenses

5.5. Make savingsMake savings

6.6. Monitor income and Monitor income and expensesexpenses

7.7. Optimize income and Optimize income and expensesexpenses

Financial planning Financial planning stagesstages

Figure 2 Figure 2 Budget spending pattern Budget spending pattern in in the USA the USA

1.1. Focus on savingsFocus on savings

2.2. Use cashUse cash

3.3. Stop bad habitsStop bad habits

4.4. Pay down debtPay down debt

5.5. Keep your receiptsKeep your receipts

6.6. Analyze your Analyze your spendingspending

7.7. Be flexibleBe flexible

Budget optimization Budget optimization tips: tips:

1.1. Record and compare Record and compare expensesexpenses

2.2. Reduce unnecessary Reduce unnecessary spendingsspendings

3.3. Increase incomeIncrease income

4.4. Meet the budgetMeet the budget

Budget construction Budget construction tools:tools:

A variety of tools are helpful for A variety of tools are helpful for constructing a personal budget.constructing a personal budget.

ConclusionConclusion

Thank you for attention