TAILIEUCHUNG - Lecture Personal financial planning – Chapter 6: Cash flow planning

Lecture Personal financial planning – Chapter 6: Cash flow planning. The goals of this chapter are: Apply cash flow analysis to household finance, treat cash flow planning as a central activity in PFP, utilize budgeting techniques effectively, develop savings approaches, employ financial ratios as an evaluation method. | Lecture Personal financial planning Chapter 6 Cash flow planning Chapter 6 Cash Flow Planning 1 Chapter Goals Apply cash flow analysis to household finance. Treat cash flow planning as a central activity in PFP. Utilize budgeting techniques effectively. Develop savings approaches. Employ financial ratios as an evaluation method. 2 Overview Cash flow planning underlies all major household decisions. Often weak cash flow arises from poor planning and control of expenditures. All parts of a financial plan must incorporate cash flow considerations. In this discussion we focus on current operating needs. 3 Overview cont. The chapter s planning objective consists of three parts To recognize the importance of cash flow to achieving goals To learn how to identify savings problems and To establish what can be done in practical terms to overcome these problems. 4 Cash Flow Planning and Current Standard of Living Cash flow planning The scheduling of current and future cash needs to achieve household goals. Examples of cash flow planning objectives Supporting a current life style. Paying off credit card debt. Saving for a vacation. More sophisticated and long-term goals include reducing tax liabilities and planning for retirement. 5 Cash Flow Planning and Current Standard of Living cont. Life styles vary significantly Some people live simply. For others identities and goals require spending on visible signs of achievement and status. We have a choice between spending and saving. To spend is to add to our standard of living today. To save is to provide for future needs. While most have no difficulty spending many have difficulties in generating the amount of savings they require. 6 Reasons for Savings Let s consider eight motives for savings 1. The Pure Life Cycle Motive To provide monies to even out differences in earnings over time. 2. The Investment Motive To take advantage of investment opportunities that can make achievement of our financial goals easier. 3. Downpayment

• Tài chính doanh nghiệp
• Personal financial planning
• Personal financial
• Lecture Personal financial planning
• Financial planning
• Cash flow planning
• Flow planning
• Behavioral financial planning
• Behavioral life cycle theory
• Characteristics of finance
• Finance tools
• Special circumstances planning
• Divorce planning
• Planning process
• Behavioral finance
• Retirement planning
• Retirement assets
• Educational planning
• Establish educational goal
• Tax planning
• Income taxation
• Estate planning
• Identify assets
• Financial statements analysis
• Financial statements
• Financial investments
• Expected rate of return
• Financial leverage
• Interest rates
• Time value of money
• Present value