PERSONAL FINANCIAL PLAN

Financial Goal[s]

Save an emergency fund worth P 20,000 that will cover at least 4 months of

expenses by the end of February 2022. The P 10,000 accounts for possible

increase in price.

Starting April 2020, we would need to save an average of P 1,750 a month

in order to achieve it.

Financial Analysis

1.1 Personal Financial Statements

1.2 Personal Balance Sheet

1.3 Financial Ratio

Based on the Financial Ratios, we can get the following information:

 1. The current assets are much more compare to current liabilities.

2. The liabilities make the 4% of the total equity.

3. The savings is 0.14% of the total earning.

1.4 Vertical Analysis

Based on the vertical analysis, the majority of the expenses are

coming from transportation, cellular load, food and shopping. From

those expenses, shopping is the one that need to be adjusted since it

is a disposable expense.

1.5 Horizontal Analysis

 Based on the horizontal analysis of Shopping expense, we can get the

following information:

1. The biggest increase in shopping expense from the months of

March and April 2020, due to the implementation of lockdown and

simultaneous sales from online shops.

2. The lowest shopping happens at the month of September

amounting to P 670.

3. The expenses made for food increases from the month of March and

April 2020 from -24% to 40%. It may be due to the implementation

of lockdown.

4. The expenses for school supplies decreased to -100% from the

months of April – July 2020, due to suspension of classes.

Analysis

Based on the information from the Financial Statement, we couldn’t able to

achieve the financial goal because of the following:

1. Last year [2020], we managed to save an average of P 429.17 per

month.

2. The savings if only 0.14% of the total earnings.

3. Having a four major expense

a. Transportation

b. Cellular load
 c. Food

d. Shopping

4. Still having a loan that need to be pay at the end of the current year.

5. Shopping a disposable expense and this expense increases in the

months of March and April, and November and December.

6. The expenses for food increases on the month of March and April.

7. The expenses for school materials flattened to -100% from the months

of April to July 2020.

Financial Plan

Expenses Adjustments

1. Limit the shopping expense to P 400/month from January to October.

Lowering it to P 400 is justifiable enough. Since, the shopped materials

are only meant for personal usage.

2. Decrease the shopping expense for the months of November and

December to P 500 and P 700 respectively. Again, the adjusted budget

is realistic and justifiable since the shopped materials is meant for

personal usage only.

3. Decrease the food expense to P 300/month from the average of P

840.83 a month.

Income Statement Forecast

 1. Transportation and Cellular Load expense remains the same as they

are categorized as fixed expense.

2. The amount of gift for the months of April, November, December and

January as it holds especial occasions and/or celebrations.

3. This gives us the total amount of P 12,130.

4. Loan of P 2,000 will be paid at the end of the period.

Credit, Risk and Investment

1. Based on the research of the available banks in the area, a savings

bank account can be opened with at least P 100 with a bonus interest

of 0.125% if there is no withdrawal within a month.

2. Invest the P 5,150 cash saved from the previous year in the bank

account.

3. Applying for a loan will not work because there is there will beno use

to generate additional income aside from the allowance collected from

the parents.
 4. Extend the financial Goal to March 2023

CONCLUSION

This creates a savings account amounting to P 29,410 by March 2023 and

this don’t just meet the goal but it exceeds the goal.