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P.O.B. Graded Presentation (Donnalee Dennis)
P.O.B. Graded Presentation (Donnalee Dennis)
PRESENTATION
Good evening, ladies and gentlemen.
Allocation of Income
Saving
1. Saving- Managing personal income through savings involves setting aside a portion of
one's earnings for future use or emergencies. Here's a detailed explanation of how savings
can be a crucial aspect of personal income management:
2. Establishing Financial Goals- These could include building an emergency fund, saving
for a major purchase (e.g., a home or car), or planning for retirement. Having specific
goals provides motivation for consistent savings.
3. Creating a Budget-Develop a detailed budget that outlines monthly income and
categorizes expenses. Determine a specific percentage or amount of income to allocate to
savings. This budgeting process helps identify areas where spending can be adjusted to
accommodate savings goals.
4. Building an Emergency Fund- Allocate a portion of savings to build an emergency fund.
This fund serves as a financial safety net to cover unexpected expenses, such as medical
emergencies, car repairs, or job loss. Financial experts often recommend saving three to
six months' worth of living expenses in an emergency fund.
INVESTMENT
Investment- Managing personal income through investment involves putting your money into
various financial instruments with the goal of generating a return. Here are some steps to manage
personal income through investment:
1. Set clear financial goals: Determine your investment objectives, whether it's saving for
retirement, buying a home, funding education, or building wealth. Having clear goals will help
you make informed investment decisions.
2. Assess your risk tolerance: Understand how much risk you are willing to take with your
investments. This will help you choose the right investment vehicles that align with your risk
tolerance.
3. Diversify your investments: Spread your investments across different asset classes such as
stocks, bonds, real estate, and commodities to reduce risk. Diversification can help mitigate the
impact of market fluctuations on your overall portfolio.
Financial Advising
Financial Advising-Managing personal income with the help of financial advising involves
several key steps and strategies. Here's a general outline of how to approach this:
1. Set Financial Goals: Start by identifying your short-term and long-term financial goals. These
could include saving for a house, retirement, education, or other major expenses.
2. Budgeting: Create a detailed budget that outlines your income, expenses, and savings goals. A
financial advisor can help you analyze your spending habits and identify areas where you can cut
back or save more.
3. Investment Planning: A financial advisor can help you develop an investment strategy tailored
to your financial goals, risk tolerance, and time horizon. This may involve investing in stocks,
bonds, mutual funds, real estate, or other assets.
4. Retirement Planning: A financial advisor can assist in creating a retirement plan that considers
your current financial situation, expected retirement age, and desired lifestyle in retirement. They
can help you choose the right retirement accounts and investment options to maximize your
savings.