1. Human Relations

2. Lecture 34

3. Managing Personal Finances-1 (Budgeting)

4. Managing Personal Finances
The purpose of this lecture is to help the students and learners lead a better personal life by managing finances effectively.
Personal attitude towards the management of debt will also be covered
With good personal financial management, people with even modest incomes can amass a large amount of money.

5. Managing Personal Finances
I. Your Personal Financial Plan:
A highly recommended starting point in improving your present financial condition
and enhancing your future is to develop a personal financial plan.
Two key elements of the plan are financial goals and a budget.

6. Managing Personal Finances
Why finance in relations course. It affects personal and work relations
Money is increasingly becoming important
Social and psychological needs will be met with money
In other words, personal satisfaction and happiness will have a strong bearing of money (GUP SHUP will require money)

7. Charles Dickens (1812 - 1870) (British Novelist)
“Spend sensibly – remember that tomorrow's need is more important than today's want.”

8. Reasons for Overspending

9. 1. Shop Keeper is friendly

10. 2. Enjoy shopping

11. 3. Shopping as a social and group activity

12. 4. Desire for possessions

13. 5. Credit is available easily (use of credit card)

14. Tips for Managing Personal Finance

15. Tips for Managing Personal Finance
Having a long term debt
Giving Control of Your Money to Someone Else
Spending Leaks
Not Setting Goals
Incurring Too Much Debt
Not Saving Enough for Retirement or Starting Too Late
Cashing Out Retirement Funds

16. Establishing Financial Goals

17. Establishing Financial Goals
A common approach to financial goal setting is to specify amounts of money you would like to earn at certain points in time.
Another common goal is to obtain enough money to cover specific expenses.
Financial goals are sometimes expressed in terms of allocation of money,
Such as putting pay raises into savings or reducing debt.
A more motivational approach is use financial goals to point to a lifestyle one hopes to achieve with specific amounts of money.
In this way money becomes the means to ends that bring satisfaction and happiness.

18. Developing a Budget (Spending Plan)

19. A budget is a plan for spending money to improve your chances of using your money wisely and not spending more than net income.

20. Steps in Budget Making

21. Steps in Budget Making
Developing a budget can be divided into a series of logical steps.
1. Establishing goals.
2. Estimating income.
3. Estimating expenses. (Do this by keeping careful track of current spending.)
4. Comparing expenses and income. (Remember that the true profit from your labor is the difference between your net income and total expenses.)
5. Carrying out the budget.
6. Evaluating the plan. (A budget usually needs reworking until it fits your needs.)

22. One by one point layering