Budget, Save & Invest

Financial Planning

Sakina Javed
Co-Founder
Women’s Investment Forum
 Budgeting, Saving & Investing

For us to have a good

hindsight on the topic, Without planning out
we first need to look realistic objectives,
into the importance of investment
“Financial Planning” opportunities cannot
which is crucial for be availed.
appropriate budgeting
.
What is Financial Planning?
Planning is a crucial trigger towards
1
success in every area of life.

It helps you in analyzing your

2
resources in the best possible way
to generate maximized returns.

Being a generic term, Financial

3
Planning entails every step that helps
in utilizing your resources at there
optimum level.

Sources of funds
+
(Financial Resources)
Utilization of funds
(Financial Techniques)
= Financial Planning

Financial Planning is the mathematical sum of following parameter (functions)

 The logic behind financial
planning for corporates is
1 the same for domestic
purposes: to plan your
future financial needs,
means to acquire them
and techniques to use
them in a profitable way

Financial The most important

Planning - 2
aspect of arranging your
finances in a household is

Domestic to put a maximum limit on

spending once basic
needs have been met.

Due to numerous spending options

3 with respect to food, clothing, extra
curricular activities- expenses are
bound to get out of hand.
 Budgeting

Appropriate spending gives rise to

the idea of “Budgeting”. It’s
important to draw a line between
needs & luxuries.

Let’s face the reality: when we have

ample liquidity available, even luxuries
become our need. This is where a line
needs to be drawn.

Budgeting entails being able to

justify your spending.
 Budgeting
The 50/20/30 rule
Cross check yourself when you are binge buying goods. Ask yourself repeatedly:
Do I need it or is it merely a want driven by competition and extra cash?

50% 30% 20%

• Housing
• Take out dinner needs • Paying down debit
• Transportation
• Concert tickets • Building up your savings
• Insurance
• Fun tech gadgets
• Groceries
Savings

Once you have excelled in budgeting, you would

realize how easy it is to save a chunk of your income

The savings should further be divided into a small

percentage kept separately for emergency expense.
You can decide to keep it in the form of cash or invest it
in something that is close to liquid.

However, the remaining percentage of your saving

ought to be invested to create the multiplier effect for
your income.

Investment helps household in creating additional

income to meet the increasing demands of their family
members.
 Investing
Investing allows you to put your money in vehicles
that have the potential to earn strong rates of
return.

However, before you consider investment, do

understand that it requires a lot of patience & optimism.

There are quite a few investment avenues namely real

estate, bonds, mutual funds and shares.

As investment in stock is closest to liquidity, its quite

attractive as well.

The safest investments are the ones that are long-

term. Once you have a prolonged view, getting your
expected return earlier would be a bonus.

The idea is to research well
that would lead to sensible
investments. Once you have
complete knowledge about
the company and sector you
have invested in, you would
not panic even if you are
making a loss, temporarily.
Investing
Also, its importance to However, keeping a short
diversify not just industry wise Hence, your investment
term view is never advisable
but period wise as well. You horizon should be two
as it leads to a lot of risks and
can choose to make some years at minimum.
volatility in the capital
investments with a medium market.
term perspective and others
with a longer view.
 Importance of investment

1. Growth of capital
2. Earn higher returns
3. Improvement in standard of living
4. Knowledge enhancement
5. Retirement savings
6. Serves as a booster for the capital markets
7. Multiplier effect for all
8. Generation of multiple income streams
9. Job creation

1 2
There are a lot negative stigmas
associated with investments in
Pakistan mainly due to instable
economy. However, if we
approach investment avenues
sensibly and make neutral
decisions, the benefits associated
are certainly higher than the costs.
Conclusion
There are a lot negative stigmas
associated with investments in
Pakistan mainly due to instable
economy. However, if we
approach investment avenues
sensibly and make neutral
decisions, the benefits associated
are certainly higher than the costs.
3
You need to understand that if you
have investment in a company
that is fundamentally strong, it will
give you moderate to good returns
over a period of time.
Hence, making investments
through savings is certainly a better
option than piling up cash at the
banks.
 THANK YOU
HAPPY INVESTING!