PF Lesson 1

a useful tool for understanding the diff stages of financial planning

• Financial Pyramid

• Personal Finance

• Financial Planning

• Budgeting

process of creating a roadmap for achieving financial goals.

• Financial Pyramid

• Personal Finance

• Financial Planning

• Budgeting

financial management of an individual or household

• Financial Pyramid

• Personal Finance

• Financial Planning

• Budgeting

process of allocating money for diff expenses

• Financial Pyramid

• Personal Finance

• Financial Planning

• Budgeting

Steps in Financial Planning

analyzing current income, expenses, assets and liabilities. Also, taking into account upcoming expenses or changes in your life that may affect your finances.

• Assess your current financial situation

• Set financial goals

• Create a budget

• Implement the budget

Steps in Financial Planning

sticking to budget like tracking expenses, making adjustments and staying motivated to reach goals.

• Assess your current financial situation

• Set financial goals

• Create a budget

• Implement the budget

Steps in Financial Planning

Helps you to understand how much money you have coming in and out, and where your money is being spent.

• Assess your current financial situation

• Set financial goals

• Create a budget

• Implement the budget

Steps in budgeting

includes salary, bonuses or commissions. This will give an idea on how much you have available to budget.

• Identify your income

• Identify your expenses

• Categorize your expense

• Prioritize your expenses

Steps in Budgeting

it shows how much money available to spend and where it should be allocated. It should include your income, expenses and savings goals.

• Prioritize your expenses

• Create a budget

• Track your spending

• Make adjustments

One of the most important step in budgeting. Keeping track of how much you are spending in each category and comparing it, to see where you are overspending or underspending.

• Categorize your expense

• Prioritize your expenses

• Make adjustments

• Track your spending