FIN1 FTU - Personal finance management

FOREIGN TRADE UNIVERSITY FACULTY OF BANKING AND FINANCE CORPORATE FINANCE DEPARTMENT -------- ------- FINAL REPORT PERSONAL FINANCE MANAGEMENT TABLE OF CONTENT PHASE 1: DAILY EXPENSEANALYSIS(HOWDOISPENDMONEY?) ........... 4 1.1. Expense Tracking Method ............................................................................... 4 1.2. Monthly Expense Record ................................................................................. 4 1.3. Expense Categorization ................................................................................... 4 1.4. Spending Habit Analysis .................................................................................. 4 1.5. Transactional history ........................................................................................ 5 A. January – Daily Expense Record .................................................... 5 B. February – Daily Expense Record .................................................. 7 C. March – Daily Expense Record ....................................................... 9 1.6. Income overview ............................................................................................. 10 1.7. Saving rate calculation ................................................................................... 10 PHASE 2: STRATEGICGOALSETTING ............................................................... 11 2.1. Short-term andMedium-termGoals ............................................................ 11 2.2. SMART GoalApplication ............................................................................... 11 2.3. Prioritization ..................................................................................................... 12 PHASE 3: PERSONAL FINANCIAL STATEMENTS (CASH FLOWS & STATEMENTS) ............................................................................................................ 14 3.1. Annual DataAggregation ............................................................................... 14 3.2. PersonalIncomeStatement 3.3. FinancialRatioAnalysis .......................................................................... 15 ................................................................................. 16 A. Income Diversification Ratio: ........................................................ 16 B. Saving ratios: .................................................................................. 16 C. Expense-to-Income Ratio: ............................................................. 16 3.4. Professional reflection .................................................................................... 17 PHASE 4: STRATEGIC BUDGETING .................................................................... 18 4.1. Expense classificationandFundingsources ............................................. 18 Self-funded Operations .................................................................. 18 I. 2 II. External funded investments (Parental Grant) ............................ 18 4.2. Updated Budget Allocation ............................................................................ 19 4.3. 1-year Sustainability and Opportunityanalysis .......................................... 20 PHASE 5: STRATEGIC FINANCIALMANAGEMENT .......................................... 21 5.1. Budget management and Disciplinestrategy ............................................. 21 5.2. Personal credit and Debt Managementplan .............................................. 22 5.3. Investment and Strategic Purchasing .......................................................... 22 A. Human Capital Investment (Priority 1) ............................................. 23 B. Technology & Tools (Strategic Purchase) ....................................... 23 C. Financial Asset Investment ............................................................... 23 3 PHASE 1: DAILY EXPENSE ANALYSIS (HOW DO I SPEND MONEY?) 1.1.Expense TrackingMethod To understand how I spend my money, I track my daily expenses using a personal finance application called Money Lover. Every time I spend money, I immediately record the expense, including the date, purpose, and amount. This method helps ensure accuracy and prevents forgetting small but frequent expenses. Tracking expenses daily also allows me to monitor my spending behavior in real time and develop better financial awareness. 1.2. Monthly Expense Record At the end of each month, I compile all recorded expenses into a monthly expense table. This table typically includes three main columns: Date, Description of Expense, and Amount of Money Spent. By reviewing this table, I can clearly see how much money I spend in total and identify which days or activities involve higher spending. This monthly summary provides a clear overview of my financial situation and forms the basis for further analysis. 1.3. Expense Categorization After listing all expenses, I group them into specific categories to better understand where my money goes. Common categories include Food and Drinks, Transportation, Education, Entertainment, Personal Needs, and Savings. Transportation costs are recorded as a monthly bus ticket (140,000 VND) instead of daily fares. Entertainment expenses include both social activities and fixed monthly subscriptions paid at the end of each month. Categorizing expenses helps me compare different spending areas and determine which categories take up the largest portion of my budget. It also makes it easier to identify unnecessary or excessive spending. 1.4. Spending Habit Analysis Based on the categorized data, I analyze my spending habits to identify patterns and trends. Based on the data from January to March, most of my expenses are allocated to food and drinks, entertainment, and transportation. Entertainment costs are relatively high due to fixed monthly subscriptions, which remain constant regardless of daily spending. Transportation costs are 4 minimal because college students benefit from low-cost monthly transportation plans. February shows a noticeable decrease in total spending and a higher saving rate because I stayed at my hometown for most of the month. This indicates that living expenses in the city significantly affect my budget. Overall, my income is sufficient to cover essential expenses while allowing me to save a small but consistent portion each month. However, my saving rate is still relatively low, suggesting that better control over food and entertainment expenses could help increase long-term savings. From these observations, I can set more realistic budgets, adjust my priorities, and make better financial decisions in the future. 1.5. Transactional history To understand my spending behavior, I track my daily expenses using a simple expense tracking worksheet. Each transaction is recorded with the date, a short description, and the amount spent. This method allows me to monitor my spending habits accurately and ensures that even small expenses are not overlooked. A. January – Daily Expense Record Date Day Daily Activities Amount (VND) Category 09/01 Thu Morning class; lunch at home — 0 10/01 Fri Morning class; coffee with friends Food & Drinks 40,000 11/01 Sat Printed study materials Education 25,000 12/01 Sun Stayed home — 0 13/01 Mon Morning class; snacks Food & Drinks 20,000 14/01 Tue Food & Drinks 30,000 15/01 Wed Stayed home — 0 16/01 Thu Morning class; lunch at home — 0 17/01 Fri Morning class; coffee Food & Drinks 35,000 18/01 Sat Movie with friends Entertainment 70,000 Morning class; coffee 5 19/01 Sun Stayed home — 0 20/01 Mon Morning class; stationery purchase Education 40,000 Food & Drinks 25,000 22/01 Wed Stayed home — 0 23/01 Thu Morning class; coffee Food & Drinks 30,000 24/01 Fri Morning class; bought personal Personal items Needs 50,000 25/01 Sat Mobile data recharge Personal Needs — 100,000 — 0 Entertainment 80,000 29/01 Wed Stayed home — 0 30/01 Thu Set aside money for savings Savings 100,000 31/01 Fri Morning class; coffee Food & Drinks 30,000 21/01 Tue Morning class; snacks 26/01 Sun Stayed home 27/01 Mon Morning class; lunch at home 28/01 Tue Paid monthly subscriptions (Spotify, TV360) January Totals Category Amount (VND) Explanation Food & Drinks 210,000 Lunches outside, coffee, snacks Transportation 140,000 Monthly bus ticket Education 65,000 Stationery, printing 6 0