PERSONAL

FINANCIAL
PLANNING
Specifically for Young Adults

by Salsabiella Ramadhanti
 HELLO!
Salsabiella Ramadhanti Abadi (Bella)
@belltingtong
Engineering Physics, 2017
Institut Teknologi Sepuluh Nopember
• An active capital market investor since 2019.
• Staff of Petrolida’s Stock Trading Competition.
0821 1193 7694
• Strategic Planner intern at StratX Kompas
LINE: bellastyls
Gramedia
LinkedIn: linkedin.com/in/salsabiellara
TABLE OF CONTENTS 3

01 The Basics

Cash Flows and

02 Credit

Types of
03 Investment
 Understanding personal
finance.

THE
BASICS
01
 Personal Finance 5

Management Why is it essential for

students and fresh
graduates?
An individual
performs to budget,
save, and spend
monetary resources 01 Get an early start to plan your personal
finance.
over time, taking into
account various
financial risks and
future life events.
02 Set your goals and achieve them.
4 Benefits of Financial 6

Planning
01 Sustain the inflation while keeping your goals unaffected.

02 Secure long-term financial goals and dreams.

03 Emergencies preparation.

04 Accelerate your savings/net worth.

Particular Areas on Personal Finance 7

Management
Budgeting, spending,
and savings
Sorting and growing
assets

Understanding and
evaluating the current
financial
Sorting and
developing
financial goals
General Steps 8

01 02 03
Set
Define your revenue financial
streams Calculate your future goals
financial needs

06 05 04

Implementation and Analyse your current Construct a financial plan

monitoring financial condition
 Principles of Financial Intelligence 9

01 02 03
Ability to
Generate Ability to Ability to
Money Allocate Money Develop Money
• Active income • Know where your money Investing:
• Passive income goes and what you buy • Aggressive
• Budget every segment • Conservative

04 05
Ability to
Ability to Access
Secure Money Information
• Risk allocation • Inflation
• BI rate
Levels of
Financial
Planning
Pyramid
 CASH
FLOWS
and 02
Personal Cash Flows:

CREDIT Understanding where the

money comes from, where it
goes, and what choices are
appropiate in creating a life of
greater satisfaction.
Personal Cash Flows Components 12

Discretionary
Income Expenses
Salary, bonus, self-employed, Where you make choices and
passive/investment sources. therefore, more control can be
exerted.

Fixed/Structural
Expenses
Foundational costs over which
you have little control.
Rent/mortgage, utilities, bills.
Savings
Opportunity to capture and
secure our wealth.
PLANNING EMERGENCY 14

FUNDS
Before we break down what it is, let’s define what it is NOT:

● It’s not used for planned purchases (house, new car, college, etc).
● It does not have to be a large, unattainable amount; it can start small.
● It’s not a set amount for everyone, it varies based on your lifestyle.

An emergency fund is money you set aside for when an emergency upends your world and
you need money to do what needs to be done.
EMERGENCY FUNDS 15

CALCULATOR
VERY
Difficulty to AVERAG DIFFICUL
replace existing EASY DIFFICUL
income E T
T
Based on: Total
• Average monthly (Avg. monthly (Avg. monthly (Avg. monthly (Avg. monthly
amount to expenses) x 3 expenses) x 6 expenses) x 9 expenses) x 12
expenses cover
• Existing liquid
savings Amount
• How difficult would needed to
(Total amount to (Total amount to (Total amount to (Total amount to
it be to replace your save to
cover) – (existing cover) – (existing cover) – (existing cover) – (existing
existing income cover if you liquid savings) liquid savings) liquid savings) liquid savings)
lost your
job

Might be
unemployed 3 6 9 12
for (months)
 GENERAL RULES OF CREDIT 16

CAPACITY

Debt Should not

𝑀𝑜𝑛𝑡h𝑙𝑦
  𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠 ∗ exceed a max of
Payments-to- 𝐺𝑟𝑜𝑠𝑠 𝑖𝑛𝑐𝑜𝑚𝑒 30% of net
income
*not including house Income Ratio
payment which is a long-
term liability
**excluding home value
Debt-to-
𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Equity  
𝑁𝑒𝑡 𝑤𝑜𝑟𝑡h ∗ ∗
Should be < 1

Ratio
 TYPES OF
INVESTME
NT
03
DEFINE RISK PROFILE 18

AGRESSIVE CONSERVATIVE
Challenging, potentially high-returns Play safe, average returns
• Stocks (saham) • Bonds (obligasi pemerintah/SUN)
• Forex and commodities (but personally, I don’t like • Mutual Funds (reksadana)
to call them as investments because they’re only
based on speculation)
MUTUAL FUNDS 19

(reksadana)

Mutual fund is an open-end

1. Reksadana Pasar Uang
professionally managed
investment fund that pools 2. Reksadana Pendapatan
money from investors to
Tetap
purchase securities.
3. Reksadana Campuran
4. Reksadana Saham
BONDS (obligasi 20

pemerintah/SUN)
FIXED COUPON (Kupon Tetap):
Floating coupon = the coupon percentage is
linked to the BI reverse repo 7 (suku bunga),
• ORI (Obligasi Ritel but minimum coupon exists.
Indonesia)
• SR (Sukuk Ritel)

FLOATING COUPON (Kupon A bond is an instrument of

Mengambang): indebtedness of the bond issuer to
• SBR (Saving Bond Ritel) the holders.
• ST (Sukuk Tabungan)

Coupon = the bonus you get from purchasing

bonds (semiannually/annually).
Fixed coupon = the coupon percentage will
Fixed coupon bonds are tradable in
not shift until the maturity date, regardless
secondary market, floating coupon bonds are
the inflation rate.
not.
STOCKS (saham) 21

Stocks represent an ownership

share in a company.

Open an account in sekuritas, for ex:

THANK
YOU
Any questions?