Personal Finance Planning for Young Professionals

Sarah's current financial goals are to build an emergency fund, save for a down payment on a house, start a retirement savings plan, and invest in further education. Her priorities include financial security, homeownership, retirement planning, and personal development.

Sarah can consider investing in low-risk options like fixed deposits, money market funds, or short-term bonds. She can also explore tax-saving fixed deposits or liquid mutual funds for higher returns.

Sarah can ensure flexibility in her financial plan by regularly reviewing and adjusting her budget, maintaining an emergency fund, diversifying her investments, and seeking professional financial advice when needed.

<p>Capitalisation refers to the total amount of a company's capital, including equity and debt. Over capitalisation occurs when a company raises more capital than it can effectively use, leading to reduced profitability, lower return on investment, and potential financial distress.</p> Signup and view all the answers

<p>Financial planning is the process of setting goals, assessing resources, and creating strategies to achieve financial objectives. It helps individuals make informed decisions, manage risks, and secure their financial future.</p> Signup and view all the answers