Personal Finance and Career Strategy PDF

MAIN TOPIC 3 PERSONAL FINANCES ARIANE K. VILLAMOR, MBA  OVERVIEW Personal finance is all about managing your own money and financial decisions. It includes everything from budgeting, saving, investing, managing debt, and planning for retirement. Mastering personal finance gives individual...

MAIN TOPIC 3 PERSONAL FINANCES ARIANE K. VILLAMOR, MBA  OVERVIEW Personal finance is all about managing your own money and financial decisions. It includes everything from budgeting, saving, investing, managing debt, and planning for retirement. Mastering personal finance gives individuals the tools they need to make informed decisions, achieve financial stability, and plan for a comfortable future. INCOME KEY ELEMENTS EXPENSES PERSONAL FINANCE SA VINGS INVESTING DEBT MANAGEMENT  PERFORMANCE ACTIVITY 1. You'll create your weekly budget. (If after all expenses, do you still save money?) 2. What is the main purpose of your budget? 3. Scenario Set-Up, As Fresh Graduate, with a starting monthly salary of PhP 25, 000. Provide a list of basic expenses (fixed and variable costs). Create a Monthly Bugdet plan 4. After students create their budgets, introduce random unexpected expenses (like a medical bill or car repair).  PERFORMANCE ACTIVITY Reflection Questions: What choices were the hardest to make? Were you able to save money? How did the unexpected event affect their budget? Discuss how budgeting in real life helps manage financial stress.  SET CLEAR FINANCIAL GOALS PROVIDE THE DIRECTION FOR YOUR FINANCIAL PLAN. WITHOUT THEM, FINANCIAL GOALS YOU MIGHT BE SAVING OR SPENDING WITHOUT PURPOSE. BEGIN BY IDENTIFYING WHAT YOU WANT TO ACHIEVE FINANCIALLY. TAKE STOCK OF YOUR INCOME, EXPENSES, DEBTS, AND SAVINGS. THIS GIVES YOU A CLEAR PICTURE OF YOUR FINANCIAL HEALTH. EVALUATE CURRENT FINANCIAL SITUATION INCOME: CALCULATE YOUR NET MONTHLY INCOME AFTER TAXES. EXPENSES: IDENTIFY BOTH FIXED AND VARIABLE EXPENSES. SAVINGS/DEBTS: HOW MUCH DO YOU HAVE SAVED, AND HOW MUCH DO YOU OWE?  A budget is your financial blueprint that CREATING A ensures you spend less than you earn and BUDGET save the difference. It helps you manage your money wisely. A budget is your financial roadmap. It outlines how much money you earn and how it will be allocated to different areas. AN EMERGENCY FUND IS A CRUCIAL PART OF BUILDING EMERGENCY FUND PERSONAL FINANCE. IT PROVIDES A FINANCIAL CUSHION FOR UNEXPECTED EVENTS LIKE MEDICAL BILLS, CAR REPAIRS, OR JOB LOSS.  START SAVING Saving is the first step toward securing your financial future, but investing is what allows AND INVESTING your money to grow over time. The goal of EARLY investing is to earn returns that outpace inflation. Time is your best ally when it comes to saving and investing. MANAGE DEBT DEBT CAN EITHER BE A TOOL FOR GROWTH (E.G., BUSINESS LOANS) OR A MAJOR FINANCIAL BURDEN (E.G., CREDIT CARD DEBT). MANAGING DEBT EFFECTIVELY IS KEY TO A HEALTHY RESPONSIBLY FINANCIAL LIFE.  START SAVING Saving is the first step toward securing your financial future, but investing is what allows AND INVESTING your money to grow over time. The goal of EARLY investing is to earn returns that outpace inflation. Time is your best ally when it comes to saving and investing. MANAGE DEBT DEBT CAN EITHER BE A TOOL FOR GROWTH (E.G., BUSINESS LOANS) OR A MAJOR FINANCIAL BURDEN (E.G., CREDIT CARD DEBT). MANAGING DEBT EFFECTIVELY IS KEY TO A HEALTHY RESPONSIBLY FINANCIAL LIFE.  INSURANCE AND insurance: Part of financial planning RETIREMENT includes protecting your wealth with the right insurance. PLANNING Retirement Planning: Planning for retirement means ensuring that you have enough savings or investments to support your lifestyle when you’re no longer working. REGULARLY REVIEWING YOUR PROGRESS HELPS MONITORING AND ENSURE YOU'RE ON TRACK TO MEET YOUR ADJUSTING YOUR PLAN GOALS. LIFE CIRCUMSTANCES, SUCH AS A JOB CHANGE, A NEW BABY, OR AN ECONOMIC SHIFT, MAY REQUIRE YOU TO ADJUST YOUR PLAN. INTEGRATING CAREER AND FINANCIAL PLANNING PERSONAL FINANCE AND CAREER DEVELOPMENT ARE DEEPLY INTERCONNECTED. AS YOU GROW IN YOUR CAREER, IT’S IMPORTANT TO MAKE STRATEGIC FINANCIAL DECISIONS THAT ENSURE LONG- TERM STABILITY AND WEALTH-BUILDING. BY ALIGNING YOUR CAREER GOALS WITH YOUR FINANCIAL OBJECTIVES, YOU’LL BE ABLE TO ACHIEVE GREATER JOB SATISFACTION, FINANCIAL INDEPENDENCE, AND A SECURE FUTURE.  1. N E G O T IA TE CAREER AND YO U R S A L A R Y PERSONAL 2. INVEST IN PROFESSIONAL FINANCE DEVELOPMENT ACTION STEPS 3. AVOID LIFESTYLE INFLATION 4. CREATE MULTIPLE STREAMS OF INCOME 5. PLAN FOR JOB TRANSITIONS  OTIATE YOUR SALARY 1. NEG THE FIRST STEP IN MANAGING YOUR PERSONAL FINANCES IS MAXIMIZING YOUR EARNING POTENTIAL. WHETHER YOU’RE STARTING A NEW JOB OR ASKING FOR A RAISE, NEGOTIATING YOUR SALARY IS CRUCIAL FOR FINANCIAL SECURITY. RESEARCH INDUSTRY STANDARDS, UNDERSTAND THE VALUE OF YOUR SKILLS, AND CONFIDENTLY DISCUSS COMPENSATION.  ES T IN PR OFE SS IONAL 2. INV DE V ELO PM EN T AS YOU PROGRESS IN YOUR CAREER, FOCUS ON DEVELOPING NEW SKILLS THAT CAN LEAD TO PROMOTIONS OR NEW OPPORTUNITIES. INVESTING IN YOURSELF THROUGH EDUCATION AND PROFESSIONAL DEVELOPMENT ENHANCES YOUR EARNING POTENTIAL. 3. AVOID LIFESTYLE INFLATION AS YOUR SALARY INCREASES, THERE’S OFTEN A TEMPTATION TO INCREASE YOUR SPENDING. THIS IS KNOWN AS LIFESTYLE INFLATION. WHILE IT’S OKAY TO ENJOY THE BENEFITS OF A HIGHER INCOME, IT’S IMPORTANT TO BALANCE SPENDING AND SAVING TO BUILD LONG-TERM WEALTH. 4. CREATE M U LT IPLE STREAM S OF IN CO M E DIVERSIFYING YOUR INCOME BEYOND YOUR SALARY HELPS YOU BUILD FINANCIAL SECURITY AND PROVIDES A SAFETY NET IN CASE OF JOB LOSS OR ECONOMIC DOWNTURNS. MULTIPLE INCOME STREAMS ALSO ACCELERATE WEALTH-BUILDING.  FOR JOB TRANSITION 5. PLAN IF YOU’RE CONSIDERING A CAREER CHANGE, IT’S IMPORTANT TO FINANCIALLY PREPARE FOR POTENTIAL TRANSITIONS, SUCH AS PERIODS OF UNEMPLOYMENT OR LOWER STARTING SALARIES IN A NEW FIELD. HAVING A STRONG FINANCIAL FOUNDATION HELPS YOU TRANSITION SMOOTHLY.  CONCLUSION Career and Personal Finance Action Steps: 1. Negotiate your salary to maximize earnings. career 2. Invest in professional development to increase your opportunities. oid life sty le inflat ion by sa vin g an d inves ting as yo ur income grows. 3. Av rnings. 4. Create multiple streams of income to diversify your ea r job tra ns itions by sa vin g in ad va nce an d lev era gin g your 5. Plan fo network. g ca ree r de ve lop me nt wit h sm ar t finan cia l pla nning , you’ll not By balancin ly ac hie ve yo ur pr ofes siona l go als bu t also bu ild a strong financial on foundation for the future.  MAIN TOPIC 4 CAREER STRATEGY Presented By ARIANE K. VILLAMOR, MBA  TOPICS TO DISCUSS CAREER PLANNING PROCESS 03 DEVELOPING RESUME 11 CAREER TRENDS 04 JOB INTERVIEW 14 OBTAINING EXPERIENCE 07 JOB OPPORTUNITIES 10  WHAT IS CAREER PLANNING? Career planning is a structured process of setting individual career goals and formulating strategies to achieve them. It involves assessing one's skills, interests, values, and aspirations, and then aligning them with opportunities in the job market or within an organization. It may be implemented using the following steps Personal-Assessment Employment Market Analysis Application Process Interview Process Employment Career Development and Acceptance Advancement 03 Personal Assessment To determine interests and values, and to identify talents and abilities. Employment Market Analysis to assess geographic, economic, technological, and social influences on employment opportunity. Application Process in which you prepare resume and create a cover letter 04 Interview Process In which you practice your interview skills, research the organization, send a follow-up message to the organization. Employment Acceptance when you assess the salary and other financial factors as well as the organizational environment Career Development and Advancement in which you develop plans to enhance career success behaviors and build strong work relationship 06  INFORMA TIO N SOURCES CAREER TR E ND S 1. Career Development Office 2. Online Sources 3. Informational Interviews 7  OBTAINING EMPLOYMENT EXPERIENCE Most people possess more career skills than they realize. Your involvement in school, community, and work activities provides foundation for employment experiences. Part-Time Employment Volunteer Work Internships Campus Projects 08 IDENTIFYING JOB OPPORTUNITIES Job Advertisements posted online, in newspapers, and in professional periodicals are a common source. Personal and Business Contacts available to advise people abput careers. Friends, Relatives, and others are potential contacts. Networking is the process of making and using contacts to obtain and update career information. Career Fairs on campus, convention centers, allow you to 09 contact several firms with one visit. Employment Agencies often match job hunters with employers. Often the hiring company pays the fee. Job Creation developing a position that matches your skills with organizational needs. Other job search sources 1) Visits to companies to make face-to-face contacts 2) Business Dictionaries and websites 3) Alumni 10