Personal Finance

Chapter 1: Overview
of personal finance

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Personal Finance
 Learning Objectives

1. Understanding personal financial planning

2. Your money personality
3. Effect of psychology on your financial plan
4. List ten principles of personal finance
5. Personal financial planning process
6. Define your finance goals
(S.M.A.R.T goal)

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“Money makes the world go around”

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Let the numbers speak

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 Let the numbers speak

• The fall 2022 Student Financial Wellness Survey from Trellis Research includes
data from 89 institutions: 36,446 students responded:
• 48% of students who had experienced financial challenges agreed they had
difficulty concentrating on academics
• 73% of students had experienced financial difficulty.
• 57% of students indicating they would have difficulty finding $500 in cash or
credit for an emergency in the next month & 15% of those saying they would
be completely unable to find $500 in an emergency.
• 1 in 5 students reported they had run out of money eight times or more in the
past year

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 Financial Problems/ Mistakes for College Students

1. Not knowing where their money is going

2. Not Having a Plan for Their Money
3. Not Determining Wants vs. Needs
4. Succumbing to Peer Pressure
5. Abusing student loans/ credit card
6. Go to class or go to work?

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 Financial Problems for College Students

7. Parents aren’t talking to their kids about money

8. No emergency fund
9. Misuse instant loan apps
10. Not opting for scholarships
11. Overlooking cost-efficient activities (Tiền nào của nấy? )
12. Ignore financial literacy
13. Oversaving & Underinvest → unknown trade-off
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 1.1 What is Personal Finance?

Personal finance , also referred to as personal financial planning , is the

process of planning your spending, financing, and investing activities,
while taking into account uncontrollable events such as death or
disability, in order to optimize your financial situation over time
(Gill, Hardeep, Madura, Jeff, 2019)

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 What is personal finance? (cont.)

Personal finance is the study of personal and family resources

considered important in achieving financial success. It involves
how people spend, save, protect, and invest their financial
resources.
(Thomas Garman, 2018)

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Personal Finance
 What is personal finance? (cont.)
Financial literacy
Knowledge of facts, concepts, principles, and technological
tools that are fundamental to being smart about money.

Financial well-being
A state of being wherein a person can fully meet current and
ongoing financial obligations, can feel secure in their financial
future, and make choices that allow them to enjoy life.
(Thomas Garman, 2018)
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Money Personality – Money Portrait

So, personal finance is just about

the management of money for an
individual or household, isn’t it?
Is personal finance about how to
get rich quick?

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 MONEY PORTRAIT
Which one of these do you wish to be?
Grace Groner was orphaned at age 12. She never married. She never had
kids. She never drove a car. She lived most of her life alone in a one-bedroom
house and worked her whole career as a secretary. She was, by all accounts,
a lovely lady. But she lived a humble life. That made the $7 million she left to
charity after her death in 2010 at age 100 all the more confusing. People who
knew her asked: Where did Grace get all that money? there was no secret.
There was no inheritance. Grace took humble savings from a meager salary
and enjoyed eighty years of hands-off compounding in the stock market.

Richard Fuscone, former vice chairman of Merrill Lynch’s Latin America

division, declared personal bankruptcy, fighting off foreclosure on two
homes, one of which was nearly 20,000 square feet and had a $66,000 a
month mortgage. Fuscone was educated at Harvard and University of
Chicago, he became so successful in the investment industry that he
retired in his 40s to “pursue personal and charitable interests.” The
same year Grace Goner left a veritable fortune to charity, Richard stood
before a bankruptcy judge and declared: “I have been devastated by the
financial crisis … The only source of liquidity is whatever my wife is able
to sell in terms of personal furnishings.”
 Money Personality – Money Portrait
➢ Your money personality is a representation of your
attitudes and habits when it comes to dealing with
money. Understanding your money personality can
help you make better financial decisions and reach
your financial goals.
➢ Do you know your money personality? Take a quiz!
➢ How to make the most of your money personality?

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Money Personality – Money Portrait

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Money Personality – Money Portrait

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 Money Personality Quiz
1. When you receive money as a gift, you are most likely to...
A) spend it right away on something you want.
B) save it for something you need.
C) invest it or donate it to a good cause.
D) split it between spending, saving, investing, and donating.

2. When you are shopping, you are most likely to...

A) buy whatever catches your eye, regardless of the price or quality.
B) compare prices and quality, and look for discounts and deals.
C) avoid shopping unless it is absolutely necessary, and buy only the
essentials.
D) have a budget and a shopping list, and stick to them.
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 Money Personality Quiz
3. When you have a financial goal, you are most likely to...
A) forget about it or give up on it if it takes too long or requires too much effort.
B) work hard and save diligently, even if it means sacrificing other things.
C) seek advice and guidance from experts or mentors, and follow their
recommendations.
D) plan and track your progress, and reward yourself for reaching milestones.

4. When you face a financial challenge, you are most likely to...
A) ignore it or hope it goes away, and continue spending as usual.
B) cut back on your expenses and look for ways to increase your income.
C) ask for help from your family, friends, or professionals, and accept their support.
D) analyze the situation and come up with a realistic and flexible solution.
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 Money Personality Quiz
5. When you think about your financial future, you are most likely to...
A) live in the moment and not worry about tomorrow.
B) have a clear vision and a detailed plan for achieving your goals.
C) be optimistic and confident that things will work out for the best.
D) be cautious and prepared for any possible risks or opportunities.

Scoring and results

A: 1 point
B: 4 points
C: 5 points
D: 2 points

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Money Personality Quiz

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 TOTAL LIVING EXPENDITURE

MONEY PORTRAIT

Please describe
and draw the
character of your
group. What
recommendations
does your group
have for this
character to
improve his or
her personal
financial
situation?
PERSONAL FINANCE MODEL: PENTAGON
Hierarchy of Financial Needs

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 1.3. How Psychology Affects Your Financial Plan

• Psychology has a major impact on human behavior

and decision making
• Psychology has a major impact on spending behavior
and ability to implement an effective financial plan
• Consider two different types of spending behavior
- Focus on immediate satisfaction and peer pressure
- Focus on the future
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 Applications of Behavioral Finance
Use psychology and economics to understand finance:

Personal finance:
Asset pricing: Corporate finance: • Procrastination
• Price Anomalies • Anchoring bias
• IPO • IPO timing • Mental accounting
underperformance • Winner’s curse • Bandwagon effect
• Value Anomaly • Cash-flow • Diderot effect
• Sentiment sensitivity • Loss aversion
• Equity premium • Overconfidence • Narrow Framing
• PEA drift • Superstar CEO’s • Return chasing
• Momentum • Passivity
• Bubbles • Home bias
• Overconfidence
• Wishful thinking
 Procrastination

• Procrastination is the act of putting

off something until a later time

• Procrastination is related to unhealthy

personal financial behaviors, such as
postponing retirement savings, last
minute shopping, and not paying bills
on time
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 Procrastination and Undersaving
Choi, Laibson, Madrian, Metrick (2002)

Survey
• Mailed to a random sample of employees
• Matched to administrative data on actual savings behavior
 Procrastination and Undersaving

• The best time to save for the future is right now.

• More than 1 in 5 working Americans are not saving any money
for financial goals, (survey from Bankrate.com)
• Everyone procrastinates, but putting off financial decisions
and tasks—like saving money—can have real costs
 How to overcome?
• 3 Simple Strategies to Stop Procrastinating and Save Money
• Start with small goals
• Remind yourself why you’re saving
• Automate your contributions
Impatience/Hyperbolic discounting/ Present-bias/ Time - inconsistency
• Imagine you’re given 2 choices:
• Get a $100 today or $120 in a week?
Impatience/Hyperbolic discounting/ Present-bias/ Time - inconsistency

• Imagine you’re given 2 choices:

• Get $100 in a year or $120 in a year and a week?
 Discounting

• Being happy now (today, this week, this year) is typically more
desirable than the prospect of being happy in the future
(tomorrow, next week, next year)
• Suppose happiness during a time period (day, week, year) can be
measured
• The discount rate is the additional future happiness that can
compensate for the loss of one unit of happiness in the present
 Discounting
• Example:
–For Alice, suppose the loss of one unit of present
happiness can be compensated by the gain of 1.07 units of
future happiness
–In this case, Alice’s discount rate is 0.07
–For Bob, suppose the loss of one unit of present happiness
can be compensated by the gain of 1.02 units of future
happiness
–Bob’s discount rate is 0.02
• Who is more patient, Alice or Bob?
 Discounting
• The higher your discount rate, the more important
the present is to you (relative to the future)
• The higher your discount rate, the more impatient
you are
 Dynamic Inconsistency
• Typically, when we are making plans about what we’d do in the
future, we are patient
–our discount rates are low
• But when the future finally arrives, we become impatient and
succumb to temptation
–our discount rates spike
• This phenomenon is called hyperbolic discounting or dynamic
inconsistency or present bias
 Impatience/Hyperbolic discounting/ Present-bias/ Time -
inconsistency and credit behavior

• Meier, Stephan; Sprenger, Charles (2007) : Impatience and credit

behavior: Evidence from a field experiment
• Controlling for disposable income and other individual
characteristics, individuals who are less patient have lower credit
scores and higher default rates. Moreover, people with
dynamically inconsistent (quasi‐hyperbolic) preferences have
higher active borrowing levels.
 Present bias and overspending

• Evidence: Tourists with high present bias are more likely to

overspend (Nguyen, Q. 2016)
• People have an easier time spending money on credit cards
as opposed to spending real money. Paying with cash is more
painful than paying with credit cards (Ariely and Kreisler,
2017)
• The better you are at disregarding your long-term interest to
satisfy immediate wants, the worse your overspending
problem becomes.
 How to overcome?
• Get In Touch With Your Old Self
• Write Your present self a letter from your future self
• → Bring the Future to You
• Don’t buy immediately. Wait for a few hours or a day and
then buy it if you really need it. Also think if you will need the
item six months or one year later before buying it.
• Automating your investment contributions can help you
properly prioritize your future.
 Instant Gratification
• Instant gratification is the desire to experience pleasure or fulfillment without delay or
deferment. It generally involves seeking a quick and easy solution rather than one that
requires effort or is delayed.
• Examples:
– Impulse shopping,
– Eating fast food,
– scrolling through social media,
– video games,
– drinking alcohol,
– procrastination,
– skipping a workout,
– using credit cards for unnecessary purchases,
– ordering takeout instead of cooking,
– surfing the internet aimlessly,
– cheating on an exam, ...
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 Instant or Delayed Gratification – Marshmallow Test
• The Marshmallow Test is an iconic experiment by psychologist Walter Mischel to measure the concept of
delayed gratification (Watts et al., 2018).

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 Instant Gratification - Consequence

• Poor decision-making: it encourages people to take the easy way out without
considering the potential consequences of their actions.
• Procrastination: When faced with an unpleasant task, people are more likely to
resort to instant gratification to delay dealing with the task → missed
deadlines.
• Impact on relationships & health: people may prioritize their desire for
immediate pleasure over the long-term needs of their partner or family;
instant gratification can temporarily boost energy and pleasure → physical
health
• Unsatisfactory long-term outcomes like undersaving, overspending, or not
achieve financial goals.

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 Instant Gratification – How to overcome

• Set goals
• Empathize with your
future self
• Develop self-discipline
• Stay away from triggers
• Celebrate small gains
• Seek support

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Anchoring Effect
Fighting anchoring bias

• Acknowledge it
• Set your own anchor (and adjust as needed)
• Consider history
• Take advantage of objective resources when setting an anchor
Mental Accounting
 Ex of Mental Accounting

• You plan to buy a refrigerator and find one tagged at

Rs15,500 in a retail chain. Just as you are ready to flash
the credit card and pay for it, a friend calls. He tells you
he has bought a similar model for Rs15,300 from a
shop just 3 km away. Will you drive the distance and
save Rs200?
• You want to buy a toaster and come across one selling
for Rs1,200. Just as before, you find another gadget
selling for Rs1,000 3 km away. Will you rush to save
Rs200?
 Ex of Mental Accounting

• We only consider the opportunity costs within a specific

account without looking at the bigger picture.
• Ex: I gave my daughter money for her birthday. She was
behind on her student loan. She should have definitely spent
the money on that. But she was reluctant to do so. She
perceived the birthday gift as “free” money
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 Mental Accounting, Saving & Debt

• Money often gets assigned to different mental accounts

as a result of how it was obtained, and the assignment to
different accounts influences how we deal with it.

• A small amount of money that comes to us unexpectedly

gets treated lightly and we're more likely to spend it on
frivolous things we don't need. Bigger sums that come to
us, say, from an inheritance, tend to get treated more
seriously and are more likely to be saved
 Mental Accounting, Saving & Debt

• People continue to earn low interest rates on fixed

deposits in the bank, while paying a high rate of interest
on their credit card debt or a personal loan, instead of
breaking the fixed deposit and repaying the debt

• Credit card dollars are cheapened because there is

seemingly no loss at the moment of purchase
 How to overcome mental accounting?

• Realize that the money we earn from various sources

is basically the same and we should be careful not to
divide it into mental accounts while spending it.

• Remember that money is fungible → not let money

lie in a fixed deposit while you are paying your credit
card balance
Bandwagon Effect / FOMO
 Bandwagon Effect

• A psychological phenomenon whereby people

do something primarily because other people
are doing it, regardless of their own beliefs,
which they may ignore or override.
• Bandwagon effect and conspicous
consumption (Malgorzata, 2015)
• The internet and social media have amplified
this herd-like behavior with which we are hard
wired
 Bandwagon Effect

• Consume products that are not the best value for

money but simply because they are popular or
fashionable
• Make unwise financial decisions. For example, you could
just take out a car loan thinking “that is just what most
people are doing, everyone is on credit!”.
 Examples of Bandwagon effect

• After college, I wanted to buy a new car/ motobike: put

down some cash, then pay it off in five years at 5%
interest. My dad asked, “Why not just save up a little
longer and buy a used car in good condition? That way
you don’t go into debt.” I replied, “Everyone goes into
debt to buy a car, though. That’s just what people do.”
 Beating bandwagon bias
• Before making any financial decision, do your homework. This
applies to small choices, like purchasing a pair of jeans, and bigger
ones, like investing money into your retirement fund.
• Look at all of your options, do the calculations, and make a
decision based on your own judgment – get off that bandwagon!
• Take advantage of bandwagon
Diderot Effect
 Why We’re Still Unhappy After Buying What We Want

• The Diderot Effect states that obtaining a new possession

often creates a spiral of consumption which leads you to
acquire more new things. As a result, we end up buying
things that our previous selves never needed to feel happy
or fulfilled.
• Ex: buy a new car → a tire pressure gauge, a car charger
for cell phone, an extra umbrella, a first aid kit, a pocket
knife, a flashlight, emergency blankets, and even a seatbelt
cutting tool.
• buy a new dress → shoes & earings to match
 Avoid Diderot Effect
• Before you commit to something, envision how it
will fit into your life → Buy items that fit your
current system
• Think in terms of sets, not individual components.
• Get rid of harmful environmental cues & keep
triggers out of sight.
• Focus more on experiences than objects.
• Set self-imposed limits
• Buy one, Give one
• Go one month without buying something new
• ....
 Other bias ....

• Sunk cost fallacy

• Illusion of control
• Availability bias ...

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1.3. How Psychology Affects Your Financial Plan (cont.)
• Assess your own spending behavior
- Do you pay rent for a single apartment rather than share an
apartment?
- Do you have large monthly car payments?
- Do you have credit card bills that you only make the minimum
monthly payment toward each month?
- Do you spend all of your income that is not needed for rent or
car loans payments within the first day or two of receiving your
paycheck?
- Do you always find a reason each month to spend all of your
income? Personal Finance
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Components of a complete personal financial plan

Budget planning Liquidity

01 & tax management 02

Asset and income
Big purchase
03 financing plan
protection plan 04
Retirement &
Investment
05 plan
estate planning
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Financial planning and cash flows
 1.4 Steps in Financial Planning

Determine your Identify & Choose & Evaluate plan

current financial Set goals evaluate Implement
Revise plan
position alternative a plan as needed
plans
Relate financial planning to planning a trip.

Steps in Financial Planning Steps in Planning a Trip

Set goals Decide where you are going
Determine your current financial Locate your home on the map
position
Identify and evaluate alternative Identify and evaluate alternate
plans routes
Choose and implement a plan Pick a route and start journey
Evaluate plan Is the trip going smoothly?
Revise plan as needed Road construction causes major
delays,
so you pick an alternate route
 1.5 S.M.A.R.T FINANCIAL GOALS
Achievable

Measureable Realistic

Timebound
Specific
 Example of SMART Goal

• Ex 1: You want to save money to give a special

gift to your parents on their 20th wedding
anniversary.
–Specific (Cụ thể): You will give your parents a 3-day, 2-
night vacation at a 5-star resort, Da Nang
–Measurable (Đo lường được): A 3-day, 2-night
vacation at a 5-star resort costs 10 million dong.
 Example of SMART Goal
–Achievable (Có thể đạt được): you need to save about 1
million/month to reach the above goal
–Realistic (Thực tế): Can you take more part-time jobs? Could you
cut back on current spending to save more?
–Timebound (Thời hạn): If you save 1 million each month, you will
reach your goal in 10 months.
• -→ I will give my parents a 3-day, 2-night vacation at a 5-star resort
worth 10 million in the next 10 months. I achieved this goal by cutting
down on my entertainment budget and taking on an extra job (online
tutor, comic translation, web design, content writing, housekeeping).
 Example of SMART Goal

• Ex 2: Save for a dream house

–Specific (Cụ thể): Tiết kiệm đủ 30% số tiền mua 1 căn
hộ chung cư ở gần trung tâm Sài Gòn (70% vay ngân
hàng)
–Measurable (Đo lường được): Giá 1 căn hộ trung cấp
70m2 ở gần trung tâm SG khoảng 3 tỷ. Mục tiêu của tôi
là để dành được 900 triệu để trả 30% căn hộ chung cư.
 Example of SMART Goal
–Achievable (Có thể đạt được): Nếu bạn muốn mua nhà sau 5 năm kể từ
khi tốt nghiệp đại học, mỗi năm bạn cần để ra 180tr, hay 15tr/ tháng (hoặc
9.3tr/ tháng nếu sau 8 năm muốn mua nhà)
–Realistic (Thực tế): Hãy xem lại dòng tiền và ngân sách của bạn, liệu bạn
có tiết kiệm được 15tr/ tháng hoặc 9.3 tr/ tháng không? Bạn có thể làm
thêm công việc khác để tăng thu nhập thường xuyên lên được không? Bạn
có cắt giảm chi tiêu thêm nữa được không? Nếu không, hãy tăng
timebound cho mục tiêu hoặc điều chỉnh mục tiêu
–Timebound (Thời hạn): Nếu mỗi tháng bạn để dành được 9 triệu thì bạn
sẽ đạt mục tiêu trong 8 năm nữa.

• -→ Tôi sẽ để dành ra 900 triệu trong 8 năm nữa để trả cho 30% giá
trị căn hộ ở gần trung tâm SG mà tôi mong muốn. Tôi sẽ hoàn
thành mục tiêu này bằng cách mỗi tháng tiết kiệm 9.3tr.
 Example of SMART Goal

• VD3: Hoạch định ngân sách để tạo quỹ khẩn cấp

–Specific (Cụ thể): Lập kế hoạch ngân sách tháng để tiết
kiệm cho quỹ khẩn cấp
–Measurable (Đo lường được): Các chuyên gia đề xuất
quỹ khẩn cấp nên duy trì ở mức có thể giúp bạn trong 3-6
tháng. Bạn cần xem xét các khoản chi tiêu để các định bạn
cần bao nhiêu cho 1 tháng trong trường hợp mất thu nhập
tạm thời? VD 5tr/ tháng → Tôi cần lập ngân sách để tiết
kiệm tối thiểu 15tr cho quỹ khẩn cấp
 Example of SMART Goal
–Achievable (Có thể đạt được): Lập báo cáo dòng tiền để xác định tình trạng
tài chính của bạn, sau đó lập ngân sách để xác định khoản tiết kiệm hàng
tháng, ví dụ bạn có thể dành ra 2 tr/ tháng cho quỹ này
–Realistic (Thực tế): Nếu bạn đang chi tiêu vượt ngân sách hoặc đang phải trả
nợ thì có lẽ mục tiêu trả nợ nên được ưu tiên hàng đầu, sau đó hãy tiết kiệm
cho quỹ khẩn cấp.
–Timebound (Thời hạn): Nếu mỗi tháng bạn có thể tiết kiệm 2 triệu/ tháng cho
quỹ này thì sau 7.5 tháng bạn sẽ hoàn thành mục tiêu

• -→ Tôi sẽ tiết kiệm cho quỹ khẩn cấp tối thiểu 15 triệu trong 7.5 tháng nữa bằng
cách xem xét lại ngân sách chi tiêu và để dành ra 2tr/ tháng.
• VD vui về mục tiêu và tự do tài chính: https://vnexpress.net/34-tuoi-da-mua-3-nha-
co-gai-duoc-phong-tiet-kiem-nhat-nhat-ban-3964812.html
 PRACTICE SMART Goal Setting
• Worksheet về thiết lập mục tiêu
Lộ trình tài chính cá nhân
1.6. Ten principles of personal finance
(10 nguyên tắc của TCCN)

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 1.6 Ten principles of personal finance
1. The Best Protection Is Knowledge
(Kiến thức là sự bảo vệ tốt nhất cho bạn – Đầu tư vào chính mình là khoản đầu
tư đáng giá nhất)
• When you feel compelled to put others first at the expense of yourself, you are
denying your own reality, your own identity.” – David Stafford
• “You can never be happy living someone else’s dream. Live your own.” –
Oprah Winfrey

2. Nothing happens without a plan (Không có gì xảy ra nếu không có kế

hoạch)
“If You Fail to Plan, You Are Planning to Fail” — Benjamin Franklin

3. Taxes Affect Personal Finance Decisions (Thuế có thể ảnh hưởng không
nhỏ đến các quyết định tài chính)
 1.6 Ten principles of personal finance
4. Stuff Happens, or the Importance of Liquidity (“Đời
không như là mơ”, bất ngờ luôn chờ bạn ở phía trước →
Bạn có đủ “thanh khoản” không?)
• Plan for unexpected events
• Have money or liquid funds/ ”rainy-day” funds/ emergency
funds available
• Liquid funds should cover 3 to 6 months of living expenses
 Ten principles of personal finance
5. Protect Yourself Against Major Catastrophes (Bảo vệ
chính mình và gia đình trước các hiểm hoạ lớn không ngờ tới)
–Have the right kind of insurance before a tragedy occurs.
–Know your insurance policy coverage.
–Focus insurance on major catastrophes which can be financially
devastating.
 10 nguyên tắc của TCCN
• 6. “Waste not want not - Smart Spending Matters” (Không
hoang phí thì luôn đủ đầy)
–Needs and wants
–Procrastinate
before spending
–Buy at the best
price
–Buy 1, give 1
–Live simply and
without regard
for minimalism.
 Ten principles of Personal Finance
7. Risk and Return Go Hand in Hand (Rủi ro và lợi
nhuận luôn song hành)
• Saving and investing grows money.
• Investors demand a minimum return above anticipated inflation.
• Investors demand higher return for added risk.
• Diversification by spreading money in several investments
reduces risk.
 Ten principles of Personal Finance
8. Mind Games, Your Financial Personality, and Your Money
Hãy đưa ra các quyết định ‘hợp lý’, tránh để các thiên kiến
(bias) ảnh hưởng đến tiền của bạn
–Behavioral biases lead to big financial mistakes (Thiên kiến
hành vi có thể dẫn tới sai lầm về tài chính: procrastination,
present-bias, mental accounting, anchoring, sunk cost effect,
diderot, bandwagon effect,v.v )
–Retailers can utilize biases to make you overspend.
 Ten principles of Personal Finance
9. Time value of money: A dollar today is worth more than a
dollar tomorrow
• “Compound interest is the eighth wonder of the world. He who
understands it, earns it; he who doesn't, pays it” (Einstein)
• Money makes money. And the money that money makes,
makes more money
 Ten principles of Personal Finance
10. Just Do It! → “Hành trình vạn dặm bắt đầu từ một bước
chân”
–Khởi đầu luôn khó khăn
–Tất cả những điều tuyệt vời đều cần thời gian
–Tiết kiệm từ sớm làm nên sự khác biệt
–Nguyên tắc “Pay yourseft first”: Tiết kiệm trước, chi tiêu sau
TWO SIMPLE PRINCIPLES OF
PERSONAL FINANCE

“Diversify Income” – “Clarify Expenses”

“ĐA THU” – “RÕ CHI”

99
Personal Finance
“Diversify Income”- “Đa thu”
SOURCES OF INCOME
• Earned income (from your salary earned at your primary job)
• Business income (money you earn from your own business or side
hustle)
• Interest income (from bank account savings)
• Dividend income (from stocks and shares)
• Rental income (or other real estate income)
• Capital gains (money earned from the sale of assets like art, loans,
businesses, and stocks)
• Royalties and licensing income
“Diversify Income”- “Đa thu”
• Thu nhập từ lương
• Thu nhập từ kinh doanh, tự do
• Thu nhập từ làm thêm, nghề tay trái
• Thu nhập từ làm sales, hưởng hoa hồng, tiếp thị liên kết….
• Thu nhập từ thiết kế và bán khóa học online
• Thu nhập lãi
• Thu nhập từ cổ tức, đầu tư góp vốn
• Thu nhập từ bán tài sản đầu tư
• Thu nhập khác: thanh lý đồ cũ, học bổng, giải thưởng,“found money”,
viết sách
• ……………………..
 Clarify expense: Income Statement & Budget planning
“Rõ Chi” – Báo cáo thu nhập và hoạch định ngân sách
 Remind

PERSONAL FINANCE is
❖Getting Ready for Opportunities
❖Provisions to reduce risks.
❖To be able to become the person you desire and live the life
you want
❖Achieve relevant financial objectives