MALISA BINTI AJIS (2010269384) MUHAMMAD IZZAT BIN AMER HAMZAH (

FINANCIAL PLANNING
Definition The importance of financial planning Personal financial planning area Financial planning approach

Definition
Process of managing fund which belongs to an individual or a person.

The importance of financial planning

It is a key to financial success.
It is a life-long process or also known as life cycle

planning. It can control ones financial situation. A good financial planning can lead to enhancing the quality of life and increasing personal satisfaction by reducing uncertainty about future needs and resources.

Advantages of personal financial planning

Can increase effectiveness in obtaining, using and

protecting ones financial resources. Can increase in control of ones financial affairs. Can improve personal relationship. Gives a sense of freedom from financial worries.

Personal financial planning areas

Consumption and saving planning

Debt planning

Insurance planning
Investment planning

Retirement planning
Estate planning

Financial planning approach

Steps:
1.

To state broad goal in more specific and concrete manner

2. 3.

To create an action plan in order to achieve the goal To evaluate performance related to achieving goal

4.

To decide if the goal we set is worth achieving

Thank you