PRINCIPLE OF ECONOMICS, LAND REFORM
ECON103 (TIME: 10:00 – 11:00 A.M.)
PERSONAL MONEY MANAGEMENT
Mr. Nico Del Valle
The idea of management implies that you have a goal or a set of goals in mind. Therefore, the first and most important part of money management is to clarify your own goals, commit to them and write them down. Why do you need money? What will you use your money for? How much do you need? For what? For When? Be specific and realistic. Different people have different needs and different wants. Prioritize your needs. Some wants and needs will have a higher priority than others. Make your priorities clear and allocate sufficient funds to each according to the importance you give it. Avoid inconsistencies. IE: If retirement is more important to you than owning a house, then more savings should be diverted to retirement than to housing. And, if funds are scarce, then you should fund your retirement savings before funding your housing savings.
Unfortunately, there will be times when you simply cannot fund all of your wants and needs. Having a priority list will help you decide where to allocate your limited resources.
Your priority list should be time-sensitive. For instance, college tuition may come before retirement in chronological order. So, you have to have completely funded the tuition before you have completely funded the retirement.
II. RRL - Review of Related Literature
Here are some case situations and the amounts of money needed to fund them:
| [pi|Goals (Wants and needs) [pic] |Total required [pic] |Monthly savings required* [pic] |Time to target amount [pic] |
|c] | | | | |
|1 |House |200,000 php |900 php... [continues]
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