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Truths
·
Whether you are tired or not, you will
retire or be retired from your job.
· Whether you want to or not, you will grow
old & feeble if you live long enough.
· Whether you want to or not, your family,
relatives and friends will need your financial support.
·
Whether you like it or not, you will either
live under a roof or under the skies; you will eat whatever you have to eat and
wear whatever you have to wear.
·
Whether you like it or not, nobody can love
you more than you love yourself.
What is Personal Financial
Planning [PFP]?
• A committed interest in managing your financial
resources.
• Distinguishing between needs and wants.
• Making plans for satisfying your needs.
• Making provision for times of lack.
• Taking charge and responsibility for your finances.
• Foregoing current benefits for future benefits.
• Investments.
What Does PFP Involve?
•
Pay
yourself first by saving
•
Educate
yourself.
•
Think
Long Term.
•
Give
reasonably.
PFP Principles – Pay Yourself First By Saving
• This
is indispensable! It is also the most difficult thing to do!
• Start
with the “rule of ten” – Save 10% - 20% of your monthly income and work up as
your earnings increase.
• Set
up a Standing Order TODAY!
• Open
a separate account (Savings or Fixed Deposits)
PFP Principles – Educate Yourself!
• Read financial pages, read books and articles on
financial planning
• Talk to like minded people who inspire and challenge
you.
• Deepen your skills on the job.
• Attend training programmes.
• Acquire new skills.
• Acquire new academic and professional qualifications.
PFP Principles – Think Long Term
• Raise
financially responsible children
• Teach
them early to learn to save and manage wealth.
• Don’t over protect your children from the valuable experience
of lack - Raise them so they can compete and survive.
• Make
investments for them in their names from an early age.
• Invest
in the improvement of your children (and your spouse) educationally and
professionally.
PFP
Principles – Give Reasonably
• Give
a Portion of your earnings to God (tithes etc.). The scriptures says there is
blessing in giving.
• Set
aside an amount as a monthly charity budget and ensure you stick to it.
• In Personal
Financial Planning, where friends and relatives are involved, always practice
restraint – give reasonably.
• Be
careful when giving. You have a responsibility to your family as well.
Ponder This?
Of 100 people who started
working at age 25, by the time they were 63 years old:
• 63%
were dependent on their off springs, relatives, friends or charities.
• 29%
were dead.
• 3%
were still working.
• 4%
had accumulated adequate capital for retirement.
• Only
1% was truly “wealthy”.
• It
is not how much you earn that matters but how much you can save and invest.
