Detailed Personal Financial Plan: Goals, Analysis, and Projections

This financial plan outlines the student's current financial situation, goals, and strategies for achieving financial success. It includes a detailed analysis of assets, liabilities, and net worth, along with short, intermediate, and long-term financial goals. The plan incorporates a cash flow statement, net worth statement, and income statement to track financial performance. It also includes a retirement plan with projections and an insurance plan to mitigate risks. The student explores various investment alternatives and strategies to achieve their goals, demonstrating a comprehensive understanding of personal finance and its application. The plan emphasizes aggressive saving, debt repayment, and strategic investment to build a strong financial foundation.

My Financial plan

Contents
1. About my financial plan .................................................................................. 3
2. My current situation ......................................................................................... 4
3. My Financial Goals.......................................................................................... 4
4. Goal Strategies Worksheet ............................................................................... 5
5. Evaluate My Alternatives ................................................................................ 6
6. Personal Financial Statement ........................................................................... 7
1. Cash Flow Statement .................................................................................... 7
2. Net Worth Statement .................................................................................... 8
3. Income Statement ........................................................................................10
7. Retirement Plan ..............................................................................................10
8. Insurance Plan ................................................................................................13

1. About my financial plan
Financial literacy is an important aspect of life that will determine a person's financial success in
the future. "Let your savings, not the other way around, dictate your expenditures." As a result, I
consider myself quite lucky to have been able to establish a stable budget from an early age.
Creating a sound budget will allow me to build a solid financial investment foundation, which will
help me achieve my goals a prosperous financial future. My financial plan is based on my post-
graduation professional goals. My first day of work as an Accouter in a big company was my
introduction day.
Since I will be sitting for my CA exam in July and Strategic level upon graduation in June of 2025,
I assumed slight inflation in my starting salary. Following graduation, I plan to work for ten years
as an accountant for a large, reputable organization. My financial plan's overall goal is to save
aggressively and pay off all of my present debts during the first tenth year of employment so that I
can invest a significant sum of money while I'm still young. I will be able to reap the benefits of
compounding interest as time goes on by developing a robust investment portfolio at an early age.
My Vision
I hope to earn enough money through my business’s regular income and investment to make me
and my family comfortable and secure.
My Mission
My mission in my career is to continue to learn about personal and career development.
My Objectives
 Going internship in audit firm within next 2 months.
 I increase my investment by 10%.
 I will save money 8% on my income every month.
 I will reduce my entertainment activities.
 I invest more portfolios within 12 months.

2. My current situation
Total Asset
Total Liability
Net Worth
3. My Financial Goals
Short-Term Goals (Less Than One Year)
Priority Goal Total Cost Duration Monthly
Cost
Target Date
High Complete CA
Corporate level
45,000 12 months 3,750 2022
December
High Improve my English
Knowledge
12,000 6 months 2,000 2022 June
High It course 24,000 4 months 6,000 2022 April
Intermediate Goals (1-10 Years)
Asset ( what I own) Liabilities (What I Owe)
Cash and cash equivalents Current Bills
Cash on Hand 8,000 Payable class fees 10,000
Savings Account 30,000 Payable boding fees 10,000
Money owed to me 1,000 Payable CA exam fees 7,400
Total Cash Equivalents 39,000 Payable CA study pack
fees
2,000
Payable Reloads 1,000
Personal Property
Jewelry 20,000
Total personal Property 20,000
Invested Asset
Stocks 15,000
Total Invested Asset 15,000
Total of All Asset 74,000 Total of All Liabilities 30,400
74,000
30,400
43,600

Priority Goal Total Cost Duration Monthly
Cost
Target Date
High Complete CA
Strategic level
60,000 3 years 5,000 2025
High Buy a car 3,000,000 5 years 2027
High House 15,000,000 6 years 2028
Medium Vacation abroad 300,000 4 years 2026
High Complete MBA 500,000 4 years 2026
Law PhD 600,000 9 years 2031
High Marriage 300,000 4 years 2026
Long-Term Goals (Over 10 Years)
Priority Goal Total Cost Duration Monthly
Cost
Target Date
High Childs
Graduation
900,000 32 years 2054
High Child’s marriage 1,000,000 33 years 2055
High Retirement
Savings
50,000,000 40 years 2062
4. Goal Strategies Worksheet
Short-Term Goal: Complete CA Corporate level
Target Date: 2022 December Monthly Cost: 3,750
Strategy 1: Working a part-time job and going to an internship in an audit firm
Strategy 2:Cuting the travel expense and it saved
Strategy 3: Limiting to purchase new clothes and foods
Intermediate Goal: Complete CA Strategic level
Target Date: 2025 Monthly Cost : 5,000
Strategy 1: Working new permeate job
Strategy 2: Decrease my expenditures on entertainment by Rs. 5,000 per month.
Strategy 3: Saving money Rs. 5,000 per month

5. Evaluate My Alternatives
Goal: Childs Graduation
Strategy 1: Investing common stocks in the share market Rs. 500,000
Pros Cons
 Buying stock is quick and more
profitable than invest land
 A high-risk investment
 Investing common stock, I can earn
dividend income and capital gain
 The company is not guaranteed to pay
a dividend
 A low transaction cost than investing
shares
 Inability to control
Strategy 2: Investing Land
Pros Cons
 Can earn a large profit margin  High transaction costs
 Low risk than investing common
stock
 Less liquidity than investing common
stock
 Less maintenance and can control
Long-Term Goal: Childs Graduation
Target Date: 2054 Monthly Cost :
Strategy 1: Investing common stocks in the share market Rs. 500,000
Strategy 2: Saving money on high-interest rates deposits
Strategy 3: Starting to new my own business
Strategy 4: Investing land

6. Personal Financial Statement
1. Cash Flow Statement
2021
Rs.00
0
2022
Rs.000
2023
Rs.000
2024
Rs.000
2025
Rs.000
2026
Rs.000
2027
Rs.000
2028
Rs.000
2029
Rs.000
2030
Rs.000
Employm
ent
100 120 125 130 480 580 960 960 970 980
Self-
employm
ent
- 75 80 85 500 600 700 750 1000 1200
Investme
nt
12 16 18 20 200 300 450 750 770 800
Cash
inflows
112 211 223 235 1180 1480 2110 2460 2740 2980
Rent 40 43 45 46 47 - - - - -
Education
al
36 84 87 95 100 116 112 - - -
Automobi
le
- - - - - 50 55 65 71 76
Personal
loans
- - - - - 300 312 315 388 455
Other
Expenses
25 36 38 40 55 60 78 80 99 120
Total
Cash
Outflows
101 163 170 181 202 526 557 460 558 651
Net Cash
Flow
11 48 53 54 978 954 1553 2000 2182 2329

2. Net Worth Statement
Assets 2022 2023 2024
Cash and cash equivalents
Cash on hand 8,000 10,000 12,000
Savings Account 30,000 40,000 50,000
Money owed to me 1,000 - -
Total cash equivalents 39,000 50,000 62,000
Personal Property
Jewelry 20,000 25,000 30,000
Total personal property 20,000 25,000 30,000
Invested Asset
Stocks 15,000 18,000 20,000
Total Invested asset 15,000 18,000 20,000
Total Assets 74,000 93,000 112,000
Liabilities
Current liabilities
Payable class fees 10,000 15,000 20,000
Payable boding fees 10,000 15,000 20,000
Payable CA fees 9,400 10,000 12,000
Payable reloads 1,000 1,200 1,500
Total Liabilities 30,400 41,200 53,500
Net Worth 43,600 51,800 58,500

Assets 2025 2026 2027 2028 2029 2030 2031
Cash and cash
equivalents
Cash on hand 40,000 45,000 52,000 64,000 78,000 82,000 85,000
Savings Account 78,000 89,000 96,000 200,000 500,000 600,000 800,000
Checking Account - - - 48,000 78,000 88,000 96,000
Total cash
equivalents 118,000 134,000 148,000 312,000 656,000 770,000 981,000
Personal Property
Jewelry 62,000 69,000 73,000 80,000 85,000 89,000 94,000
Car - - - 2,000,000 2,800,000 3,500,000 3,800,000
House - - - 1,500,000 1,800,000 2,200,000 2,500,000
Land - - - 2,000,000 3,000,000 3,500,000 4,000,000
Total personal
property 62,000 69,000 73,000 5,580,000 7,685,000 9,289,000 10,394,000
Invested Asset
Stock 200,000 300,000 400,000 650,000 720,000 800,000 890,000
Total Invested asset 200,000 300,000 400,000 650,000 720,000 800,000 890,000
Total Assets 380,000 503,000 621,000 6,542,000 9,061,000 10,859,000 12,265,000
Liabilities
Current Liabilities
Payable Expenses 25,000 20,000 22,000 23,000 18,000 35,000 32,000
Total Current
Liabilities 25,000 20,000 22,000 23,000 18,000 35,000 32,000
Non-Current
Liabilities
Vehicle loan - - - 166,000 233,000 291,000 316,000
Retirement benefit
plan 30,000 45,000 58,000 62,000 68,000 70,000 73,000
Insurance payment - - - 20,000 25,000 28,000 30,000
Total non-Current
Liabilities 30000 45000 58000 248000 326000 389000 419000
Total Liabilities 55,000 65,000 80,000 271,000 344,000 424,000 451,000
Net Worth 325,000 438,000 541,000 6,271,000 8,717,000 10,435,000 11,814,000

3. Income Statement
Income 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000 Rs.000
Employment
income 100 120 125 130 480 580 960 960 970 980
Self-
employment - 75 80 85 500 600 700 750 1000 1200
Investment 12 16 18 20 200 300 450 750 770 800
Total
income 112 211 223 235 1180 1480 2110 2460 2740 2980
Interest - - - - - - 15 20 26 30
Education 36 84 87 95 100 116 112 - - -
Other
Expenses 25 35 41 43 55 65 74 78 87 108
Total
expense 61 119 128 138 155 181 201 98 113 138
Net income 51 92 95 97 1025 1299 1909 2362 2627 2842
7. Retirement Plan

NOW AT RETIREMENT UNCERTAINTY (%)
Retirement
starts age 40 Annual pension
benefit (Rs.) 0 Investment return
uncertainty 2.5%
Annual
income (Rs.) 980,000 Annual pension
benefit increases (%) 0% Annual savings amount
uncertainty 0%
Annual
inflation &
income
increases (%)
6.25% Desired retirement
age 60 Annual savings
increases uncertainty 0%
Retirement
savings balance
(Rs)
500,000 Number of years of
retirement income 20 Annual pension benefit
amount uncertainty 0%
Annual
savings amount
($)
294,000 Income replacement
(%) 30% Annual Pension benefit
increases uncertainty 0%
Annual
savings
increases (%)
0% Investment return
(%) 8%
Investment
return (%) 8%
Age Salary Balance Interest Yearly
savings
Desired
retirement
income
Pension
income
Year
ending
balance
40 980,000 500,000 40,000 294,000 0 0 834,000
41 1,041,250 834,000 66,720 294,000 0 0 1,194,720
42 1,106,328 1,194,720 95,578 294,000 0 0 1,584,298
43 1,175,474 1,584,298 126,744 294,000 0 0 2,005,041
44 1,248,941 2,005,041 160,403 294,000 0 0 2,459,445
45 1,327,000 2,459,445 196,756 294,000 0 0 2,950,200
46 1,409,937 2,950,200 236,016 294,000 0 0 3,480,216
47 1,498,058 3,480,216 278,417 294,000 0 0 4,052,634
48 1,591,687 4,052,634 324,211 294,000 0 0 4,670,844
49 1,691,167 4,670,844 373,668 294,000 0 0 5,338,512
50 1,796,865 5,338,512 427,081 294,000 0 0 6,059,593
51 1,909,169 6,059,593 484,767 294,000 0 0 6,838,360
52 2,028,492 6,838,360 547,069 294,000 0 0 7,679,429
53 2,155,273 7,679,429 614,354 294,000 0 0 8,587,783

54 2,289,978 8,587,783 687,023 294,000 0 0 9,568,806
55 2,433,101 9,568,806 765,504 294,000 0 0 10,628,311
56 2,585,170 10,628,311 850,265 294,000 0 0 11,772,575
57 2,746,743 11,772,575 941,806 294,000 0 0 13,008,381
58 2,918,414 13,008,381 1,040,671 294,000 0 0 14,343,052
59 3,100,815 14,343,052 1,147,444 294,000 0 0 15,784,496
60 0 15,784,496 1,262,760 0 988,385 0 16,058,871
61 0 16,058,871 1,284,710 0 1,050,159 0 16,293,422
62 0 16,293,422 1,303,474 0 1,115,794 0 16,481,101
63 0 16,481,101 1,318,488 0 1,185,531 0 16,614,058
64 0 16,614,058 1,329,125 0 1,259,627 0 16,683,556
65 0 16,683,556 1,334,685 0 1,338,353 0 16,679,888
66 0 16,679,888 1,334,391 0 1,422,000 0 16,592,278
67 0 16,592,278 1,327,382 0 1,510,875 0 16,408,785
68 0 16,408,785 1,312,703 0 1,605,305 0 16,116,182
69 0 16,116,182 1,289,295 0 1,705,637 0 15,699,840
70 0 15,699,840 1,255,987 0 1,812,239 0 15,143,588
71 0 15,143,588 1,211,487 0 1,925,504 0 14,429,571
72 0 14,429,571 1,154,366 0 2,045,848 0 13,538,089
73 0 13,538,089 1,083,047 0 2,173,714 0 12,447,423
74 0 12,447,423 995,794 0 2,309,571 0 11,133,646
75 0 11,133,646 890,692 0 2,453,919 0 9,570,419
76 0 9,570,419 765,634 0 2,607,289 0 7,728,764
77 0 7,728,764 618,301 0 2,770,244 0 5,576,821
78 0 5,576,821 446,146 0 2,943,385 0 3,079,582
79 0 3,079,582 246,367 0 3,127,346 0 198,602
 At age 79, I will have a saving balance of Rs. 198,602

8. Insurance Plan
Age
Monthly
Income
(Salary /
Business)
Living
Expenses
(Variable)
Fixed Expenses
(Life Insurance
Premiums)
Medical
Insurance
Property
insurance
34 91,667 62,875 14,136 201 7,200
35 102,667 69,255 6,636 217 8,100
36 114,987 74,795 22,973 235 8,748
37 128,785 80,779 22,973 507 9,448
38 144,239 90,643 22,874 548 10,204
39 161,548 97,894 22,874 592 11,020
40 180,934 105,726 22,874 958 11,902
41 202,646 114,184 6,537 1,035 12,854
42 226,963 127,603 4,870 1,118 13,882
43 254,199 137,811 4,870 1,811 14,993
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384
Cone of Uncertainty Savings Disbursements
Savings Balance - Working Years Savings Balance - Retirement

44 284,703 148,836 4,870 1,956 16,192
45 318,867 152,647 4,870 2,112 17,487
46 357,131 164,859 4,870 3,422 18,886
47 399,987 178,047 4,870 3,696 20,397
48 447,985 192,291 4,870 3,992 22,029
49 501,744 196,660 4,870 4,311 23,791
50 561,953 212,393 4,870 4,656 25,695
51 629,387 229,384 4,870 5,028 27,750
52 704,914 247,735 4,870 5,431 29,970