Financial planning updated on public helath

Financial planning

1. FINANCIAL PLANNING IN 2025

2. KEY NOTIONS In difficult economic situations, individuals and families need to look carefully at income and expenditure patterns, and reduce their expenditures. Go for essentials and not what is desired. We need to learn to live within the essentials. We can track the budget. The cost of access to health and education is escalating much faster than the disposable income, and eating more and more into disposable income…. It is unavoidable that costs will increase. Question is how do we address the issue? We address this by educating people for better fin. resource planning. Young persons should plan for financial resources for their children. Normal consumption costs that are unavoidable include, food, clothing, health and education, those are the sorts of core costs that every family has to incur. How do we make sure that those core costs are met as effectively as possible?

3. MONEY: A DIFFICULT CONVERSATION Set a Time to Talk: Don't spring a money conversation on your spouse when they aren't expecting it. Set aside mutual time for a meeting. Recognize your differences: Everyone has a different relationship with money. It's not a requirement that you understand why your spouse feels the way they do, but it is important that you recognize and respect those feelings. . There is no one size fits all solution: Strategies and techniques that work for you may not work for your spouse. Trying to force someone to adopt methods that aren't comfortable for them can potentially make matters worse. Practice makes Perfect: Money is not a one and done conversation. It's something you'll need to come back to again and again. But the good news is that the more you talk about money, the easier it becomes. .

4. TIME TO GET ORGANIZED LIST YOUR ASSETS, DEBTS: Include all loans that each of you bring into the marriage MAKE A PLAN TO TACKLE DEBT: Even if one spouse is coming with more debt, build a strategy together START FOLLOWING A BUDGET: Sep a rate your “needs” and ”wants”. Keep aside funds for emergency DECIDE IF YOU WANT TO CONSOLIDATE: Consider the comvenience of having all your accounts in similar financial institutions. Update your Paperwork. DECIDE HOW YOU WILL OWN ASSETS: Jointly or individually? Some couples prefer a ‘yours’, ‘mine’ or ‘our’ approach MAKE A PLAN FOR SPENDING DECISIONS: Talk about how you will handle daily expenses and bigger purchases

5. It’s a difficult question, but one every couple must face: should you combine finances after marriage or keep them separate? Only you can decide this, but there are some crucial points to consider when making your decision. Should You Combine Finances? Benefits Challenges “We’re in This Together” Unity Debt Disparity Transparency Builds Trust Lack of Independence Simplifies Budgeting Guilt When Spending on Self

6. Debt Student Loan Outstanding Medical Bills Outstanding Utility Bills Auto Loan Credit Cards Home Mortgage Private Lender CURRENT FINANCIAL REALITY Account Balance Checking Saving Expected Salary Investments Securities Stocks Bonds Certificates of Deposit Mutual Funds Assets Property (Home or Land) Vehicles Personal Property

7. ILLUSTRATION

8. Sanity Security Compr-omise 50% 30% 20% NEEDS: MONTHLY GROCERIES RENT MORTGAGE UTILITIES INSURANCE CAR PAYMENTS SAVINGS CHIILDREN EDUCATOIN RETIREMENT EMERGENCY FUND FAMILY SAFETY NET WANTS DINING OUT SHOPPING TRAVEL BIG TELEVISION THE SWEET SPOT: BALANCE THE 50/30/20 BUDGET RULE

9. 10 Basic for Comparison Needs Wants Meaning Needs refers to an individual’s basic requirement that must be fulfilled, in order to survive Wants are described as the goods and services, which an individual likes to have. Nature Limited Unlimited What is it? Something you must have Something you wish to have Represents Necessity Desire Survival Essential Inessential Change May remain constant over time May change over time

10. 1 LIST ALL YOUR INCOME SOURCES AND AMOUNTS 2 LIST ALL YOUR HOUSEHOLD EXPENSES 3 ESTIMATE HOW MUCH YOU WILL SPEND ON EACH ITEM 4 TRACK YOUR EXPENSES 5 SCHEDULE A REGULAR BUDGET DISCUSSION WITH FRIEND AND FAMILY 6 TALK ABOUT YOUR FINANCES AND PRIORITIES REGULARLY How To Budget

11. Maintain Budget - Income & Expense Record Date Time Nature of Expense Amount Feeling? https://www.youtube.com/watch?v=dxiphnr0664 Budget is a tool to manage flow of your money Make an Expense List and Types of Expenses Use Mobile Applications

12. The Three Type of Goals

13. Financial Planning Life Cycle Youth: Exploring professions; Building Skills; Experiments. Professionals Car, House; Income Generation; Marriage Family Financiers Kid’s Education; Asset Financing; Retirement Planning; Family's Financial Goals; Insurance. Stability Retirement Planning; Health Maintenance; 25 to 34 35 to 49 50 to 65 01 02 03 04 15 to 24 14 Senior Citizen Maintaining Healthy Lifestyle; Self-sufficiency; Legacy. 65 and Above 05 Risk Profile: Aggressive Phase: Planning Risk Profile: Aggressive Phase: Accumulation Risk Profile: Moderately Aggressive Phase: Accumulation Risk Profile: Moderate Phase: Preparation Risk Profile: Conservative Phase: Retirement

14. Money Mindset Matters Develop a Positive Money Mindset Take the consequences of inflation seriously. Financial Goals - Know your ‘WHY’ Because Instagram will make life difficult. Save first, Spend with the rest. Invest in inflation-beating assets. Investing is NOT difficult. Especially when..

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17. Short-term goals Safety and emergency funds Low risk and principal protection Limited protection against inflation Long-term goals Wealth growth and retirement Higher potential returns Beats inflation Investing provides growth Savings meet short-term needs

18. “You need a huge amount to start investing.”

19. You don’t.

20. Investment Options

21. Treasury Bills Short-term government debt (3, 6, 12 months). Low-risk, backed by the Government of Pakistan. Suitable for conservative investors. PIBs Long-term government bonds (3, 5, 10, 20 years). Higher returns than T-Bills. Ideal for long-term investment goals. Issued by corporations with higher return potential. Higher risk compared to government securities. Suitable for investors with moderate risk tolerance. Corporate Bonds Fixed Income Securities

22. Shariah -Compliant Asset-backed securities with returns . Issuers Government of Pakistan ( Ijarah Sukuk ). Corporates (Corporate Sukuk ). Popularity Growing demand among Islamic financial institutions. Suitable for investors seeking shariah compliant and stable returns. Sukuks

23. Islamic Funds Shariah -compliant funds in both equities and fixed income. Types Income Funds Lower risk, steady income. Balanced Funds Mix of equity and fixed income, moderate risk. Mutual Funds Equity Funds Higher risk, potential for high returns.

24. Market Dynamics Prices influenced by global markets. Popular among individuals. Gold Investment Forms Physical Gold: Bars, coins, and jewelry. Gold Contracts: Offered at PMEX. Purpose Considered a safe haven. Hedge against inflation and currency fluctuations

25. You can make PKR 100,000,000 from just a monthly contribution of PKR 5,000

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27. Investing in Stocks

28. Economic growth has remained strong despite cyclical ups and downs. Stocks have outperformed inflation in the long-term. Stocks like Sazgar Engineering, Colgate Palmolive, Meezan Bank, and Unilever Foods have seen returns up to 40,000% over 20 years. The stock market has surged over the past year, and the trend is likely to continue. Stocks can help you build wealth

29. Are these names familiar?

30. If you had invested 100,000 in 2009… In Stock Market: You would have made 1,754,896/- In Gold: You would have made 898,905/- In Fixed Income: You would have made 598,976/-

31. If you had kept 100,000 at your home since 2009 Your money would be worth only 17,500/- i.e. 82.5% value would have been eroded due to inflation

32. NATIONAL SAVING SCHEMES (NSS)

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34. What you need to remember about NSS Types of Certificates: Regular Income, Behbood Savings, Special Savings, Defense Savings, Pensioners Benefit Account. Early Penalty Charges Maturity Period Check: Savings.gov.pk

35. INVESTMENTS – INSURANCE Insurance is Low Risk Low Return investment ; Pros: Death, disability, health benefits along with stable Returns Cons: generally lower than inflation due to conservative investment mandate and high cost structure. Types of Insurance: Life Insurance Health Insurance Term Based Insurance

36. INVESTING IN MUTUAL FUNDS

37. Voluntary Pension Funds and it’s benefits

38. Contributions made in Voluntary Pension Scheme during any one tax year (July 1 to June 30) shall be entitled to a tax credit under Section 63 of the Income Tax Ordinance 2001 (On existing VPS). This effectively means that the investor will be allowed tax credit equal to the effective tax on contribution. The tax liability may be reduced for both self-employed and salaried individuals. You can avail tax credit at your average rate of tax on amount of actual contribution or 20% of your annual taxable income whichever is lower. Tax Credit Benefits

39. Contribution At Retirement (60-70 or 25 years from first contribution) Before Retirement Tax free redemption Subject to tax at average rate of last 3 Years return 50% 50% All withdrawals subject to tax at average rate of last 3 Years return Finance Bill 2022 Taxability of withdrawals at retirement (AGPF/AGIPF)

40. Building your First Financial Plan

41. Types of Investments: Equity/ Stock Market Fixed Income or Government Bonds (Mutual Fund) Government Certificates ( Behbood & Defence Savings) I nsurance Gold R eal Estate Investments – Thought Process Always remember, if you are not earning equally or more than inflation, than you are losing money

42. SOME TIPS FOR EFFECTIVELY MANAGING YOUR FINANCES FULLY DISCLOSE YOUR DEBT AND FINANCIAL SITUATION SHARE YOUR LIFE DREAM AND MONEY GOALS MA I NTAIN A BUDGET AND TRACK YOUR EXPENSES: PRIOROTIZE PAYING OF YOUR DEBT AND MAKE STRATEGIC DECISIONS KEEP EACH OTHER ON TRACK AND MOTIVATED: MAINTAIN A BALANCED INVESTMENT PORTFOLIO AND UNDERSTAND THE PROS AND CONS OF EACH INVESTMENT

43. KEY TAKEAWAYS FROM THE SESSION Honesty about money is essential. Short Term: Insurance, Saving, Purchasing Assets, incidental expenses, (vacations, monthly expense), School admission, Emergency Funds. Medium Term: Children’s Education, Streamline investments, retirement planning Long Term: Children’s Higher Education, House Planning, Expense after retirement The Bottom Line There is no right way to manage your finances but with communication, trust, and a bit of planning, you can manage your finances and plan for a happy life