Assessing Your Financial Fitness
4.2 (83 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
9,978 students enrolled

Assessing Your Financial Fitness

Identify your immediate and long term financial goals. Know what resources you have to meet and achieve your goals.
4.2 (83 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
9,978 students enrolled
Last updated 10/2017
English
English [Auto-generated]
Price: Free
This course includes
  • 1 hour on-demand video
  • 6 articles
  • 9 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What you'll learn
  • Identify your immediate and long term financial goals
  • Know what resources you have to meet and achieve your goals

Requirements
  • Internet Access
  • Computer or Smartphone
  • Basic usage of spreadsheets
  • A Money Sensible Attitute
Description

This course covers the process of financial planning. Learn how to identify your immediate and long term financial goals. Know what resources you have to meet and achieve your goals.

Financial Planning is a process for you to take charge and manage your finances to ensure your financial well-being. It comprises of Managing cash-flow for your current needs and future goals, e.g. buying a home; Managing exposure to unforeseen circumstances by providing for your dependants’ basic needs; Managing resources to meet your financial goals, e.g. child education and retirement.

Just like a physical health medical test, a financial fitness assessment allows you to have a better understanding of your financial health. The following are common personal financial problems that can affect your financial fitness: Failing to plan ahead, or not planning at all; Not spending within your means; Spending on borrowed money, buying with consumer credit; Delayed savings for retirement; Falling prey to financial sales pitches; Not doing your homework; Making impulsive decisions; Exposing yourself to high financial risk.

In order to accurately access our financial situation, we need to find out the following: Net Cash Flow Position; Net Worth; Financial Ratios. The net cash flow position is the amount after the total outflows have been subtracted from the total inflows. The net cash flow statement gives you your net cash flow position, and can be used as a tool to find out if you are making good use of your income. Your net worth is a snapshot of your financial position at a specific point in time.

In the event of a total loss of income, you may have to use your liquid assets to cover your regular expenses. The Basic Liquidity ratio shows the number of months you can expect your liquid assets to sustain your monthly expenses. This is also known as your emergency savings. The Savings Ratio reveals how well you are building up your savings for your future consumption. The Non-Mortgage Debt Service Ratio compares the monthly payments to service all debt, excluding the mortgage, with a person’s monthly take home pay. This ratio simply provides insight into what amount of income is going towards non-mortgage debt. The Mortgage Servicing Ratio reveals the percentage of your monthly income that can be used to service your monthly property loan instalment.

This course continues from "Making Sense Of Your Money". Also, after going through this course, you can join the next module entitled "Implementing Your Financial Plan".

Who this course is for:
  • Working Adults
  • Students
  • Anyone who handles money
Course content
Expand all 17 lectures 01:11:11
+ Introduction
4 lectures 04:12

This video gives an overview of the Financial Planning process.

Financial Planning Beings Now
00:45

Find out about the objectives of this module.

Discovering and Assessing your Financial Fitness
01:02
In this lecture, find our more about the MoneySENSE Core Financial Capabilities Framework. The five Core Financial Capabilities are:
  • Understanding money
  • Understanding yourself, your rights and responsibilities
  • Managing everyday money
  • Planning ahead
  • Selecting financial products
MoneySENSE Core Financial Capabilities Framework
01:35
This lecture provides notes to explain the process of financial planning. In a nutshell, financial planning involves setting financial goals, knowing what resources you have to achieve those goals and then implementing and monitoring the progress of reaching those goals.
Financial fitness can be compared to physical fitness. Just like we take certain physical readings such as blood pressure, cholesterol level and BMI in order to assess our physical health, our financial health can be assessed by looking at various financial numbers and ratios.
What Is Financial Planning and Financial Fitness
00:50
+ Setting Financial Goals and Priorities
2 lectures 04:07
In this video we will consider the importance of setting financial goals.
This video can also be viewed at http://www.youtube.com/watch?v=Ojfinlty-JI
The following lectures contain notes based on this video.
Setting your Financial Goals and Priorities
01:04
This lecture explains what financial goals are. Just as we have destination goals when we set out on a journey, a financial goal is like the financial destination or position that we would like to be in.
This lecture also explains what S.M.A.R.T. financial goals are. Having financial goals which as Specific, Measurable, Achievable, Realistic and Time-Bound will increases the chances of you reaching your financial goals.
Setting S.M.A.R.T Financial Goals
03:03
+ Assessing Your Financial Fitness
5 lectures 17:23
In this Mashup, Ferris explains about the Cash Flow statement and the Net Worth Statement. It is important to have these two statements in order to accurately assess your financial position.
Ferris Explains Cash Flow and Net Worth
11:20
This lecture provides notes to explain the concept of Net Cash Flow. Net Cash Flow is basically your total inflows minus your total outflows. A positive Net Cash Flow results in a Cash Surplus. Conversely a negative Net Cash Flow results in a Cash Deficit. It is obviously better to have a Cash Surplus.
Take some time to fill in your Net Cash Flow statement. It is important to be as detailed as possible and to identify all your Cash Inflows and Cash Outflows. This will help to build a better and more accurate picture of your financial situation.
Understanding Net Cash Flow
00:27
This lecture provides notes on the concept of financial Net Worth. This can be calculated by taking all our Assets (everything we own) minus our Liabilities (everything we owe). Obviously a high financial Net Worth is a good financial position to be in.
Take some time to calculate our financial Net Worth. Once again, it is important to be as detailed as possible when listing down our Assets and Liabilities. This will help us have a clearer picture of our financial health.
Understanding Your Net Worth
00:36
In this video, Ferris explains four essential financial ratios that we need to calculate in order to assess our financial health.
Ferris Explains Financial Ratios
03:41
In this lecture, we provide written notes various financial ratios and how they are calculated. It is important to note that our financial ratios have to be looked at holistically so that we can have an overall assessment of our financial situation.
Understanding Your Financial Ratios
01:19
+ Case Studies and Excel Demonstrations
5 lectures 25:40
In this video, the detailed calculations for the Case Study are presented. Download the supplementary material for reference.
Detailed Financial Ratios
07:38
In this lecture, we look at how an Excel spreadsheet can be used in help us calculate Mr James Tan's financial ratios and net worth.
Mr James Tan Case Study - Excel Demo
04:36
In this lecture, we look at how an Excel spreadsheet can help us calculate Mrs James Tan's financial ratios and net worth.
Mrs James Tan Case Study - Excel Demo
04:31
In this lecture, we look at how an Excel spreadsheet can help us calculate the combined financial ratios and net worth of Mr and Mrs James Tan.
Mr and Mrs James Tan Combined Case Study - Excel Demo
04:15
This video contains a case study and also concludes this e-learning module. Make use of the supplementary Excel file and PDF file to see if you can calculate the financial ratios on your own. If you are not sure of anything please ask. Thank you for viewing the e-learning module.
Interpreting The Financial Ratios
04:40
+ Quiz and Additional Resources
1 lecture 00:29

Test your knowledge on Assessing Your Financial Fitness.

Quiz on Assessing Your Financial Fitness
3 questions
This lecture contains links to additional resources where you can learn more about money matters pertaining specially to Singaporeans.
Additional Resources
00:29