Financial

Management
By : Aina Qistina
Table of contents
01. Importance
financial
of
02. Ways to create a
financial plan
management

Short-term goals Examples of

03. and long-term 04. personal budgets for
goals setting adults
1. The importance of financial management

● Helps organisations in financial planning;

● Assists organisations in the planning and acquisition of funds;
● Helps organisations in effectively utilising and allocating the
funds received or acquired;
● Assists organisations in making critical financial decisions;
● Helps in improving the profitability of organisations;
● Increases the overall value of the firms or organisations;
● Provides economic stability;
 2. Ways to create a financial plan

1. Set financial goals is the foundation for your financial success. After all, you have
to know what you want to accomplish in order to actually accomplish it. However,
when it comes to setting goals, you want to make sure your goals are well defined
and prioritized accordingly.

2. Track your spending. In order to ensure you can save enough to meet your goals
you need to get a handle on your current spending.
● Download a budgeting app on smartphone
● Add all income and outgoings so you can get an accurate picture of your cash flow.
● Divide your spending into essential and non-essential.
3. Clear outstanding debts. The first thing to do is clear any outstanding debts, as
the interest you pay on this could eliminate any interest gained from your savings (or
growth from your investments).

4. Create an emergency funds. Once debts are cleared, many people recommend
having an emergency fund in an easy-access cash account to pay for unexpected
costs such as home repairs or sudden changes in circumstances.

5. Save or invest for the long term.

● High interest cash savings accounts
● Investments
Investments tend to outperform cash savings over the long term, so you might consider
investing your money instead of saving it. This comes with the risk that the value of your
investments could fall.
 3. Short-term and long-term goals setting
1. A short-term goal is something you want to do in the near future. The near future
can mean today, this week, this month, or even this year. A short-term goal is
something you want to accomplish soon.
A short term goal is a goal you can achieve in 12 months or less. Examples include:
● Take a class
● Buy a new television
● Purchasing a laptop

2. A long-term goal is something you want to do further in the future. Long-term

goals require time and planning. They are not something you can do this week or
even this year. Long-term goals usually take 12 months or more to achieve.
Here are examples of goals that can take several years to achieve:
● Graduate from college
● Save for retirement
● Have my own business
Tips for Setting Long-Term Goals

● Work backwards. Think about what you want to achieve then plan steps going back
to what you can do right now.

● Create a picture of where you want to be in life 10 years from now.

● Think about what you need to do in five years, in one year, and in six months to get
to your long-term goal.

● Write down what you need to do each month to achieve your goals.

● After each monthly goal is achieved, look at your goals and adjust them as needed.
4. Examples of personal budgets for adults

1. Fixed expenses are those expenses that stay the same every month. Not everyone has
the same fixed expenses, but here are a few of the most common examples:
● Mortgage or rent payments
● Loans (student loans, car loans, home equity loans)
● Insurance (car insurance, health insurance, life insurance)
● Daycare
● Tuition
● Utilities
2. Variable expenses is a broad category that includes every expense that changes each
month. Not all discretionary spending is unnecessary. Take a look at the following examples:

● Groceries and dining out

● Clothing
● Personal care
● Entertainment
● Home and car repairs
● Medical copays
Thank You!