GROUP VI BAMBICO, Kathleen Rose D. CARREON, John Rodolph D. LOPEZ, Hazel Andrea G. NARCEDA, Miela Grace B. PURISIMA, Brevin Josef F. URSUA, Jelly Mae F. PERSONAL FINANCIAL PLAN I. OBJECTIVES Rarely, will an individual’s current income exactly balance with consumption desires. Sometimes, one may have more money than he/she wants to spend; at other times, one may want to purchase more than he/she can afford. These imbalances will lead individual either to borrow or to save and invest to maximize the long-term benefits from income. Accordingly, setting personal goals is important and it’s better to start planning as early as now to properly manage finances and to meet financial objectives. Individuals have a variety of financial goals that could either be a short-term and/or longterm objective and how they structure their financial plan is related to their age, financial status, future plans, and needs. The objective of financial planning is to ensure availability of funds whenever these are required. Along with availability of finance, the objectives are the following: To examine the current financial status and develop financial goals To establish the planning horizon which is the time period of plan (whether for a short-term or long-term basis To choose the right investment to achieve financial goals To monitor the financial plan from time to time for re-evaluation II. PROFILE As for the person who just started their career, Ms. Pyongyang answered positively in the interview that was conducted online. She is a 23 years old female, single and residing at San Agustin Sur, Agoo, La Union. She is currently teaching Filipino subject at the Junior High School Department of Saint Louis College, City of San Fernando, La Union. Due to the new normal mode of learning this pandemic, she is doing her best to prepare modules and attend her online classes via zoom meetings. For the individual who just started their own family, we have Mrs. Busan. She is a 35 years old female, married for five years to Mr. Busan, 36 year of age. Currently, they have a child, Baby Busan who is 5 years old. Mr. and Mrs. Busan are presently residing at Purok 1 Pottot, Bauang, La Union. Both of them are employed to the same company in different branches as branch managers. Mrs. Busan is assigned at the branch in Naguilian, La Union and Mr. Busan at the branch in Bauang, La Union. According to her, she had a hard time travelling going to work and her daily travelling expenses had tripled during the pandemic. III. BACKGROUND AND SITUATION Ms. Pyongyang was a graduate of Bachelor of Science in Secondary Education at Don Mariano Marcos Memorial State University – South La Union Campus. She is currently working as a private school teacher at Saint Louis College, City of San Fernando, La Union. Ms. Pyongyang teaches Filipino subject in junior high school. According to her, she was not able to get her salary during the months of lockdown so she does not have any means of supporting her expenses during this time. Luckily, she was able to cope with these financial needs when Pres. Duterte ordered to open classes this school year. However, as a new normal mode of teaching on her side, she needed to manage the requirements of distant learning. In this way, she was able to help her family's financial needs especially in supporting her sibling’s education. Being an older sister in the family, much of her expenses are allotted for her family’s daily needs and siblings’ tuition fees. As of today, Ms. Pyongyang doesn’t have investments. Mrs. Busan was a graduate of Bachelor of Science in Computer Science at Union Christian College. She is currently employed as a branch manager at Universal Storefront Services Corporation Naguilian, La Union. The Universal Storefront Services Corporation is a sister company of western union to give satisfactions and needs of the target market in different types of transactions including money transfer, ticketing services, network loading, bills payment and many other. Her husband, Mr. Busan was also a graduate of Bachelor of Science in Computer Science at the same school. The real relationship goal is that even their work at present is the same. Mr. Busan is also employed as a manager at the same company but at a branch located in Bauang, La Union. In terms of their investments, they have invested in mutual funds. Like all other families, much of their finances are spent in meeting daily expenses particularly paying their housing loan monthly amortization. As stated in her profile, she had a hard time going to work during the start of the lockdown due to Covid-19 pandemic. Aside from the limited transportation available at that time, it tripled her daily fare expenses. According to her, it is a good thing that their company is very considerate. They provide its employees daily fare allowances. With regards to their finances, their company belongs to essential business so they are able to continue their operation and receive their regular salary but they are forced to use their vacation leave to cut the losses of the company and which is understandable for them because all are affected by this crisis. IV.FINANCIAL GOALS In this time of pandemic, some of us are not financially stable and as for Ms. Pyongyang, it is quite challenging for her to find a stable and good paying job and secure her siblings’ future. Currently, her financial goal in terms of her education is to save for her to continue her Graduate studies for better opportunities and faster promotions. She is also aiming to fully renovate her parents' house before getting married. Additionally, she also wants to widen her investments and have a passive income. Building a family of your own is quite challenging and as for Mrs. Busan, they made sure to secure first their home after marriage. Currently, her financial goals are more into long-term rather than of short-term goals. They are aiming at investing in real estate specifically to acquire a land that will appreciate by time. V. FINANCIAL NEEDS ANALYSIS AND RECOMMENDATION Part of Mrs. Pyongyang’s monthly income is used to help her family in paying their monthly needs. She also needs to save for her Graduate Studies degree. And lastly, she aims to have her parent’s house renovated before she gets married. We therefore recommend that Ms. Pyongyang should; 1. start investing in investment institutions like Sun Life Financial, PRU Life UK, etc. which offers a wide variety of investments for education, life insurances, financial security; 2. Place her savings to interest earning institutions like banks and stock markets; and 3. Invest in low-capital franchise business that could help in increasing her monthly income. The monthly income of Mrs. Busan and her family are allocated to their monthly expenses, maturing debts specifically on their housing loan, and also for the educational fees of their children. Mrs. Busan is more focused on sustaining their short-term needs which includes food, daily allowance, car fuel, utility bills, and other expenses for house maintenance. We therefore recommend that Ms. Busan should; 1. Work on settling her debt at PAGIBIG; 2. Invest to an education plan for her children; 3. Invest to a health care plan, life plan, and retirement plan that could be provided by insurance companies like PRU Life UK, Sun Life Insurance and many more; and 4. Place her savings on interest earning institutions like banks and stock markets; DISCLAIMER: The names are fabricated but information is based on real persons and their situations.
