Personal Financial

Planning
GROUP 6
Topic 6
Assume that you are 35 years old. You are single without
dependent people. Make your financial planning for the period in
10 years. Please, follow the financial planning process that you
have studied.

Team members
1. Lê Nguyễn Quỳnh Như – 1913316122
2. Nguyễn Lý Minh Như – 1913316123
3. Lê Trúc Phương - 1913316134
4. Nguyễn Minh Phương – 1913316135
Table of Contents

01 Abstract 02 Background

03 Financial Planning 04 Conclusion

I. Abstract

Never too late to relook into it and shape

the future to what we want it to be.

A financial plan:
❑ Understand your finances through
measurable financial goals and the effects
of decisions made.
❑ A whole new approach to their budget
❑ Control over one's financial lifestyle.
II. Background
NGUYỄN LÊ NHƯ PHƯƠNG
• A 35-year-old Finance Manager
• Monthly salary: 30 millions VND
• Single, living alone without
dependent people
• Buy a house on installments at the
age of 25
• Choose a term life insurance
• Have an intention of buying a new
car at the age of 40
→ need a financial plan for 10 years
later
III. Financial Planning Process

1. Define financial goals

1. Current Financial Status ASSET

1.1 BALANCE SHEET Investment

Date: December 31, 2021 Stocks 109,425,000 ₫
Bonds
ASSET Social Insurance 192,717,417 ₫
Liquid asset Total Investment 302,142,417 ₫
Cash on hand 54,000,000 ₫ Real Property
Emergencies funds Primary residence 1,000,000,000
Savings account 450,000,000 ₫ ₫
Saving for Car 412,965,894 ₫ Total Real Property 1,000,000,000 ₫
Total Liquid Assets 504,000,000 ₫ Personal Property
Motorbike 40,000,000 ₫
Total Per. Property 40,000,000 ₫
TOTAL ASSETS 1,846,142,417 ₫
1. Current Financial Status
1.1 BALANCE SHEET LIABILITIES
Date: December 31, 2021
Current Liabilities
Bank credit card balances 10,000,000 ₫
Bank line of credit balances
Other current liabilities 5,000,000 ₫
Total Current Liabilities 15,000,000 ₫
Long-term Liabilities
Primary residence mortgage 360,050,460 ₫
Furniture loans
Total Long-term Liabilities 292,717,417 ₫
TOTAL LIABILITIES 375,050,460 ₫
NET WORTH 1,471,091,957 ₫
1. Current Financial Status
1.2 INCOME AND EXPENSE STATEMENT OF 1 YEAR
1. Current Financial Status
1.2 INCOME AND EXPENSE STATEMENT OF 1 YEAR
1. Current Financial Status
1.2 INCOME AND EXPENSE STATEMENT OF 1 YEAR
1. Current Financial Status
1.3 SMART Model

SHORT-TERM GOALS
Specific 1. Emergencies funds 2. A new suit
Measurable In need of 360,000,000 VND In need of 3,500,000 VND
Put aside 1,500,000
Attainable VND/month from her Save 875,000 VND/week
salary.
By avoiding drinking
The more she saves means
Realistic Starbucks and hanging out
the less she spend
with friends.
Time-bound Not limited 4 weeks
1. Current Financial Status
1.3 SMART Model
LONG-TERM GOALS
Specific 1. House installment 2. Investment in life insurance
Measurable In need of 500,000,000 VND In need of 600,000,000 VND
To have an amount for
Put aside 6,000,841 VND/month spending when not able to
Attainable
from her salary. work, spend 2,500,000
VND/month from now (2022)
She can apply for overtime work and
At present, she deducts a
Realistic may work on holiday (x3 nominal
fraction from her salary.
salary).
5 years (initially paid for 10 years, 5
Time-bound 20 years or more
years left)
1. Current Financial Status
1.3 SMART Model
LONG-TERM GOALS
Specific 3. Retirement goal 4. Purchasing car
Receive 22,500,000 VND each
Measurable In need of 1,500,000 VND
month from the age of 55
Paying social insurance each
Use part of her savings
Attainable month (10.5%) based on
until her 45
nominal salary.
She can work harder and
Realistic
save more
20 years (already paid 10
Time-bound 20 years
years)
III. Financial Planning Process

2. Financial plans & Strategies

At first, plan to save more:
➢ Save from unnecessary expenses
(making a shopping list,…)
➢ Spend less (clothes, expensive
meals,…)
➢ Use a savings account for
emergency circumstances

Through Personal Finance

Management Lecture:
➢ Need an emergency fund.
➢ Decompose her spending and
saving into 4 parts
Monitor and control
o Spending
o Income
o Living expenses
o Purchases
o Savings

Save money for when not

being able to work
→ Spend less on her
expenses.
Diyas Sky apartment (approximately 28 m2) which was 800 mil VND

500 mil 300 mil

Borrow from the bank Borrow from her parents
6,000,841 VND
Term of 15 years and an interest rate of 12%/year
2 years ago, Covid pandemic
leads to a decrease in
Sacombank’s deposit
interest rate:

5.6%
Research and realizes that the
Vietnamese stock market
recovered quickly and grew
beyond expectations
VN-INDEX

3, 2020 12, 2020 End of 12, 2020

From 1,000 points at the Recovery back to 1,000 Reached 1,103.87

end of 2019 to 645 points points
points Increase 11.48%
compared to the end of
2019.
VN-INDEX

31st Mar, 2022

Make more
capital injection
into it
Reached 1,191.44 Had previously invested
points 109,425,000 in stocks.
 SOCIAL INSURANCE
PREMIUM
Since the age of 25:
Compulsory Social Insurance Premiums 10.5 %
- Social Insurance 8%
- Health Insurance 1.5%
- Unemployment Insurance 1%) based on her
monthly salary

At the age of 35:

- Gross salary: 30,000,000 VND
- The maximum monthly salary on which Social
CREDITS:
Insurance This presentation
premiums are based:template was VND
29,800,000
created by Slidesgo, including icons by
Flaticon,
The social infographicspremium:
insurance & images by Freepik
= 29,800,000 x 8% + 29,800,000 x 1.5% +
30,000,000 x 1%
= 3,131,000 VND
LIFE INSURANCE PACKAGE

1. Name 2. Contract value

An Khang Hanh Phuc insurance 1,000,000,000 VND
package of Bao Viet Insurance
Corporation

3. Management fee 4. Initial fee

3,660,000 VND 58,000,000 VND
(25,000/month, increase
1,000/year)
Life Insurance Package – An Khang Hanh Phuc
YEAR RATIO PAID PREMIUMS ACCUMULATED PREMIUMS INITIAL FEE
(a) (b) (c) (d) = (a) x (b)
1 80% 30,000,000 ₫ 30,000,000 ₫ 24,000,000 ₫
2 60% 30,000,000 ₫ 60,000,000 ₫ 18,000,000 ₫
3 35% 30,000,000 ₫ 90,000,000 ₫ 10,500,000 ₫
4 5% 30,000,000 ₫ 120,000,000 ₫ 1,500,000 ₫
5 1% 30,000,000 ₫ 150,000,000 ₫ 300,000 ₫
6 1% 30,000,000 ₫ 180,000,000 ₫ 300,000 ₫
7 1% 30,000,000 ₫ 210,000,000 ₫ 300,000 ₫
8 1% 30,000,000 ₫ 240,000,000 ₫ 300,000 ₫
9 1% 30,000,000 ₫ 270,000,000 ₫ 300,000 ₫
10 1% 30,000,000 ₫ 300,000,000 ₫ 300,000 ₫
Life Insurance Package – An Khang Hanh Phuc
YEAR RATIO PAID PREMIUMS ACCUMULATED PREMIUMS INITIAL FEE
(a) (b) (c) (d) = (a) x (b)
11 1% 30,000,000 ₫ 330,000,000 ₫ 300,000 ₫
12 1% 30,000,000 ₫ 360,000,000 ₫ 300,000 ₫
13 1% 30,000,000 ₫ 390,000,000 ₫ 300,000 ₫
14 1% 30,000,000 ₫ 420,000,000 ₫ 300,000 ₫
15 1% 30,000,000 ₫ 450,000,000 ₫ 300,000 ₫
16 1% 30,000,000 ₫ 480,000,000 ₫ 300,000 ₫
17 1% 30,000,000 ₫ 510,000,000 ₫ 300,000 ₫
18 1% 30,000,000 ₫ 540,000,000 ₫ 300,000 ₫
19 1% 30,000,000 ₫ 570,000,000 ₫ 300,000 ₫
20 1% 30,000,000 ₫ 600,000,000 ₫ 300,000 ₫
III. Financial Planning Process

3. Implement Plans & Strategies

3.1 Diyas Sky apartment
Meet all the conditions

Its location was right in the center

Could decorate creatively on her
own.

Price

Only 800 million at the

time she was 25
Vietnamese Stock market - SSI
Top 50 most valuable brands

mainly focuses on
personal transactions

Good Platform Accurate analysis

Cooperated with many Its support fee, quite high,

major partners → good is used to hire a team of
stock investment service experts with good
platform knowledge and capacity

SSI Account
Bao Viet Insurance Package

- Variety of - Until 2021, increased its charter capital from 2,000

insurance packages billion VND to 6,000 billion VND
- Be incentives and - Become the leading insurance enterprise in terms of
discounts for both scale and charter capital
customers

Customers can use part of the investment insurance to

contribute to the universal life fund for profitable
Long-standing investment.
Safe
III. Financial Planning Process

4. Develop and implement budgets

- Phuong had a part-time job
as a piano performer.
- After completely paid that
debt, she stopped this job and
completely focused on her
career path
- Annual inflation rate is
approximately 3%,
- Her salary will increase
7% each year
1000
VNM Stock

500
CSV Stock

500
VND Stock
7,175,000
Previous profit

116,600,000
Has invested recently

1,400,000
Has received the dividends from
VNM, CSV, VND
According to her projection

01 02 03 04

Have a cash surplus Use it as a beginning Invest 70% and Open a new savings
each year, which balance for the next spend 30% in a account in
turns into spare year for budgeting saving account Sacombank at 12%
cash matured in 24
months.
III. Financial Planning Process
5. Evaluate results of plans & budgets
 Solvency ratio 79.68 %

Savings ratio 10.02 %

Debt service ratio 12.74 %

79.68 10.02 12.74

Solvency ratio
the assets are worth more
than the liabilities
→ high ability to repay all
debts
Savings ratio Debt service ratio
Not good at money For most cases it’s
management between 0 and 20%.
→ should save more money A high debt service
to improve her financial requires a higher portion
status of her income.
IV
Conclusion
Personal financial planning

Marshal and control your Improve your standard of Enjoy your money more by
financial resources living spending it wisely, and to
accumulate wealth.
Thank you!