MANAGING PERSONAL FINANCES

Transcription

1 MANAGING PERSONAL FINANCES

2 FACILITATOR: PATRICK WAMEYO ACIB (UK), MBA FINANCIAL LITERACY EDUCATOR & COACH #pwameyo

3 A LIFE TIME APPROACH

4 Theme PAY CHEQUE TO ME INCORPORATION

5 Life Time Phases The Environment of Money

6 Investor Life Cycle

7 In the Course Outline Life Time Phases The mindset development process Investing is a set of life time choices How does financial freedom look like? It is compounding whichever way!

8 LIFE IS IN SEASONS Life is a series of steps and experience Each step introduces a whole new experience. Which contribute the development of permanent positions on the way we view of word going forwards

9 The mindset development process

10 Performance Life Time Career Stages A career includes many positions, stages and transitions just as a person s life does. High Exploration Establish- Mid career Late career Decline ment From college First job Will performance The elder Preparing to work and being increase or statesperson fo r accepted begin to retirement decline? Low Age 10

11 Establishment Phase Exploration: The transition that occurs in mid-twenties as one looks at work after college education, seeking answer to various questions about careers from teachers, friends etc.

12 Sphere of Influence and control There are two kinds of people Proactive Reactive What kind of a person are you?

13 Sphere of Influence and Control Re -Active People Blame their environment (circumstances) Do not pay attention to the changes in the environment

14 Sphere of Control Pro-active People Take responsibility Monitor their environment Develop plans for each of the issues important to them

15 Sphere of Influence and Control Guided group discussion Pro-active Vs re-active people: Thoughts Actions Habits Behaviors Wellness

16 Investing A set of life time choices

17 Establishment Phase Establishment: This is the stage where one begins the search for work, picks up the first job, commits mistakes and learns thereafter

18 Life is in Seasons YRS Born and starts baby class & Nursery school YRS Primary/ Sunday/ Rights of passages YRS Secondary/ University/Y oung Adult YRS Employed/v isionary/ma rried/ children YRS Retirement begins YRS Children growing up/invest ments YRS Quits job. Go where? YRS Promotion/ Expansion YRS Who takes care of you? YRS Children graduate Bonus YRS Still alive? 18

19 Establishment Phase Age block Age Block Age Block 36-42

20 Establishment Phase Wealth Accumulation Phase Aggressive investing Focus capital growth in long term Focus cash flow for re-investing

21 Establishment Phase Personal Finance pillar: Earning Income options Savings habits Spending habits Investing habits Borrowing habits

22 Mid Career Phase Between 35 and 50 one is typically confronted with a plateaued career, where your maturity and experience are still valued but there is the nagging feeling of having lost the initial fire in the belly

23 BUDGETING

24 In The Budget 1. Income sources and amounts 2. Savings for Investment & emergency 3. Expenses 4. Net worth Habits : daily, weekly and monthly

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26 Planning: Process of developing a strategy to achieve a desirable financial outcome

27 Financial Plan A financial plan is a logical road map from where you are to where you want to be - from your present financial situation to financial and time freedom at a defined time in future

28 Financial Planning 1. Planning personal income 2. Planning spending 3. Risk management 4. Planning Taxes 5. Wealth accumulation and distribution

29 Compounding whichever way!

30 Investment Options and Skills 1. Paper assets 2. Real estate 3. Other

31 Investment Options and Skills 1. Paper assets 2. Real estate 3. Other

32 Is A transition Necessary?

33 Transition The process of moving from one set of circumstances to another, and refers to the range of issues and emotions that individuals face during various new stages of their life or career

34 Debt Reduction Plan

35 Late Career Phase

36 Late Career Phase This is the stage where one relaxes a bit and plays an elderly role, offering advice to younger ones as to how to avoid career mistakes and grow continually.

37 Decline Phase This is the stage where one is constantly reminded of retirement, after a series of hits and misses.

38 Decline Phase 1. > 60 years (spending /gifting) phase 2. Regular Cash flow is key 3. Cash flow source must be solid 4. Inflation adjusted income very low

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