Conclusion

The task that has been given me to prepare the future personal financial planning which
depends on our income, expenses, living requirements and individual goals. During the process
of doing the coursework, I have learned that when I am preparing my financial planning and can
understand clearly about the benefits of having personal financial planning and budgeting.

The relationship between salary, down payment, loan amount, period of loan, and
monthly repayment is interconnected in personal finance.

 For salary, the higher salary may qualify us for a larger loan amount, but its also
essential to ensure that loan repayment is manageable within our budget.
 For down payment, the larger down payment can reduce the loan amount, leading
to lower monthly repayments and potentially better loan terms.
 For loan amount, the loan amount impacts monthly repayments, a larger loan
generally means higher monthly payments, while a smaller loan results in lower
monthly payments.
 For periods of loan, the longer the loan periods typically mean lower monthly
repayments but may result in paying more interest over time. Shorter loan
periods often lead to higher monthly payments but less overall interest pain.
 Lastly, monthly repayment is influenced by the loan amount, the interest rate and
the loan period. It is crucial to find a balance where monthly repayments fit
comfortably within our budget.

From my point of view, personal financial planning and budgeting are crucial for several
reasons. They help us to track expenses, save for goals and prepare for emergencies. They also
enable us to prioritize spending, reduce debt, invest wisely and build a secure financial future.
Overall, they provide a roadmap for managing money efficiently and achieving our financial
aspirations.