Assessing Your Financial Fitness

Identify your immediate and long term financial goals. Know what resources you have to meet and achieve your goals.
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12,636 students
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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

5 sections17 lectures59m total length
  • Financial Planning Beings Now
    00:45
  • Discovering and Assessing your Financial Fitness
    01:02
  • MoneySENSE Core Financial Capabilities Framework
    01:35
  • What Is Financial Planning and Financial Fitness
    02:04

Instructors

Financial Literacy Trainer
Ferris Wee
  • 4.4 Instructor Rating
  • 5,114 Reviews
  • 65,555 Students
  • 7 Courses

Ferris Wee

BA (Hons) Business and Finance

Ferris Wee is a qualified Financial Planner, and through his previous workplace, a global financial services company, he has helped more than one hundred clients with his clear process in reviewing their financial needs. Specifically, he has helped clients to identify their goals and ensure that they make the right choices to meet those goals today, tomorrow and in the years to come.

Ferris is passionate about leading people beyond financial breakthroughs, and has conducted financial literacy training in Singapore and Indonesia, as well as sports camp training for youths in India. Ferris is also an experienced financial counselor, helping many people manage their budget to meet their financial responsibilities.

Ferris is a Certified Will Writer, and has provided Professional Will writing, estate planning and custody services. He is also an Associate Estate Planning Practitioner.

Prior to his career in financial planning, Ferris was with the Republic of Singapore Air Force working on budgeting, logistics, maintenance and overseeing safety issues. For his strong leadership qualities, Ferris received the Outstanding Safety Warrior Award.

Ferris has a BA (2nd Class Upper Honours) specializing in Business and Finance. He also holds industry certifications in M5, M8, M8A, M9, M9A, HI, BCP and PGI.

Unbiased Financial Education Courses
Institute for Financial Literacy
  • 4.4 Instructor Rating
  • 12,191 Reviews
  • 139,166 Students
  • 26 Courses

  The Institute for Financial Literacy is a collaboration between MoneySense and Singapore Polytechnic Enterprise. 

    Our financial education courses cover basic money management, financial planning and investment know-how.