On Sunday, October 7, 2018, Asharqia Chamber, represented by the Businesswomen's Center, held the seminar (Personal Financial Planning) in cooperation with Sown Advisory. The seminar discussed how to plan personal finances and manage good financial management for young people who are on the path of their careers.
During the seminar, the financial advisor from Sown Advisory, Marwa Harb, explained that personal financial planning is a continuous process that helps to provide sufficient income to meet personal needs and ensures coverage of risks if they occur, as well as it stimulates the skills of dealing with funds in general and emergency financial situations in particular, and chooses the best savings programs and investment to achieve the goals of the future.
Harb said personal financial planning is a comprehensive financial plan that helps develop understanding of the current financial situation and how it will be in the future.
She pointed to the importance of being aware of where the money was spent? Young men and women should be aware that their financial objectives must be realistic, orderly, achievable and specific in accordance with a specific time frame, and also be aware of risks and solutions to avoid them.
She stressed the importance of reviewing the personal financial plan periodically and it is not a rigid plan, but flexible and adjustable from time to time according to the goals set.
Harb pointed out that the personal financial plan should include keeping the income from (three to six months in the bank) without investing it, whether to help in the face of an event known in advance as debt repayments or school installments, etc., or an unknown event such as sudden disability, illness or unemployment.
She stressed the importance of distinguishing between the concepts of financial freedom and financial independence. The first refers to the ability to do what is planned without restrictions because of work or any other consideration.
She said, "It's a stage, that your money works for you, not that you work for money."
The concept of financial independence refers to the ability to meet the three basic needs (clothing, food and shelter) without any debt, accompanied by higher expenditure income.
Harb noted that people's belief that saving money instead of investing it to avoid risk is one of the common mistakes in investing. She is pointing out that despite the risks surrounding investment, but it is a required path to achieve future goals.
Harb requested young people, in managing their personal money, to have rationality in their expectations about the results of financial planning, constantly review the performance of their investments and exit if necessary and reinvest in other places.
She advised young men and women to read and review insurance options for the potential need of one of their products, to develop their skills in managing personal budgets from time to time, and to set up their own budget to help monitor and track income banks and set up part of the money for emergencies, with long-term financial goals and post-retirement planning.
