Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
AKPK CHAPTER 1
Transcript of AKPK CHAPTER 1
ABOUT FINANCIAL PLANNING
Involve asking questions about your future, your dreams and goals.
Think about what you want to do in your life
Need to plan from the financial aspect.
Know how to budget, saving and spending your money overtime
STEPS IN FINANCIAL PLANNING
Assessing where you are now in financial terms
Creating a financial plan
Implementing the plan
Monitoring and reassessing
BENEFITS OF FINANCIAL PLANNING
More control of your financial affairs
Have better personal relationships with people around you
Have a sense of freedom from financial worries
Be more effective in obtaining, using and protecting your financial resources
LIFE STAGES AND FINANCIAL GOALS
VALUE OF MONEY
What would you choose? Either you want the money now or one year later?
1990 : RM 1 =
2012 : RM 1 =
2030 : RM 1 =
It shows that RM 1 now is worth more than RM 1 in the future
Principle of economics : As long as money can earn interest, any amount of money is
more the sooner it is received.
Example : You save RM 1,000 in your saving account at Mesti Untung Bank at 5% interest rate per annum.
After 1 year, RM 1,000 that you have save today will be worth RM 1,050
THE POWER OF COMPOUND INTEREST
Definition : Compound interest arises when interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest.
interest applied to interest
1st Year : Save RM 10,000 (5% interest per annum)
End of 1st year : Get RM 10,500
2nd Year : Save RM 10,500 (5% interest per annum)
End of 2nd year : Get 11,025
What would be the amount in your savings account after 10 years....?
RM 10,000 x 5% = RM 500.00
Total : RM 10,000 + RM 500
= RM 10,500
RM 10,500 x 5% = RM 525.00
Total : RM 10,500 + RM 525
= RM 11,025
AFTER 10 YEARS....
You will gain more if you invest in an investment that pays interest on a monthly basis instead of yearly compounded basis.
Compound interest can be a double-edge sword.
It means that it can give advantage & disadvantage to you.
Give more return on your investment due to compounding interest.
Earn more interest income the longer you keep the money
Loan or credit card debt :
End up by paying more interest
Due to delaying your loan or credit card repayment
Longer time, more will be charged on you