Acc101 Ia Nguyen Thi Thanh Thuy Hs171230 Mkt1715

FACULTY OF BUSINESS
ASSIGNMENT
“Financial Planning”
Name : Nguyen Thi Thanh Thuy

Student ID : HS171230
Class : MKT1715
Subject : ACC101
Major : Digital Marketing
Supervisor: Tran Khanh Trang
Hanoi, 2023
1
Attend the talk show “Financial independence” held by the FPT University and write a
report to describe your financial planning in short term and long term, applying the
knowledge of Accounting and the knowledge you obtain from the Talk Show.
Contents
I. Introduction.........................................................................................................2
1. Definition of Financial Independence..............................................................2
2. What is a short-term financial plan?................................................................3
3. What is a long-term financial plan?.................................................................3
II. Short-term financial plan for 5 months............................................................3
III. Long-term financial plan for 5 years................................................................5
IV. Reference.........................................................................................................5
I. Introduction
Through the Talk Show "Financial Independence" presented by lecturers at FPT University, I
have a report on the long-term and short-term financial plan. Nowadays, society is
developing more and more and people's standard of living has become higher. As a
sophomore in Digital Marketing, I nurture the perception that people's standard of living also
increases over time. So how can I be financially independent in the future?
1. Definition of Financial Independence

Financial independence refers to not needing to work to support yourself because you have
adequate passive income. To put it plainly, Financial Independence is the state where
someone has enough money to cover living expenses for the rest of his life without having to
work or depend on others.
The requirements of someone who is financially independent are not met by relying on others
or their employment. Instead, they depend on their possessions and their earnings to maintain
a decent lifestyle.
If you reach this level of financial independence, you could choose to retire earlier.
Financial independence is assessed based on the following 5 specific factors:

 Income: You can only cover your monthly expenses if you have a reliable, active source
of income. It results in monetary independence.
2
 Bills: You should be able to pay your bills. Financial independence cannot be attained if
you still depend on others to cover all of your expenses, including rent, energy, water
bills, etc.
 Debt: During times of need, you are compelled to borrow money. Therefore debt is not a
bad thing. To be seen as financially independent, you must be able to make your loan
payments on time.
 Savings: To prevent having to take out a high-interest loan in case of an emergency, you
need to have savings and a personal financial reserve. This, too, contributes significantly
to better personal financial wellness.
 Investing: To swiftly reach financial independence, you need passive income in addition
to active revenue. The most popular investment options at the moment for idle cash
include stocks, open investment funds, and stocks.
2. What is a short-term financial plan?

Short-term financial planning is the specification of short-term financial activities and the
possible impacts of those activities, usually within a few months or 1 to 2 years. Financial
planners look at all of a business's activities, not individual activities.
The short-term plan consists of small tasks designed to meet the larger goal of the long-
term plan. In addition, these jobs can also be flexibly changed to suit the actual situation.
3. What is a long-term financial plan?

A long-term financial plan is a realistic plan of budget revenues and expenditures that meet
important future financial goals. A common goal is to have a large amount of money to
carry out future projects, individuals. Usually takes a fair amount of time and patience to
implement. Understanding long-term trends and potential risk factors that can affect
overall financial sustainability allows finance staff to be proactive. solve these problems.
II. Short-term financial plan for 5 months.

As a student still sitting at school, most people think about how they can have money to
use for personal things while the amount of spending on studying and paying is high. Each
person has a different level of income and expenditure, at each different age, we should all
have some savings to serve the necessary needs.
PER MONTH PERSONAL EXPENDITMENT TABLE
Describe Amount to spend Rating level

1 Accommodation and other services 1.200.000 M
3
2 Electricity bill 350.000 M
3 Eat and drink 1.100.000 M
4 Travel expenses 500.000 L
5 Shopping 700.000 H
6 Some other expenses incurred 150.000 M
7 Snacks such as cake, candy, milk tea,... 250.000 H
8 Entertainment 800.000 H
Total 5.050.000
On average, a month I will receive about 5.500.000 VND from my parents. Looking at the
table above, on average a month I will spend on services, housing, transportation,
entertainment is about 5.050.000 VND.
Amount saved from each month = 5.500.000 - 5.050.000 VND
= 450,000 (VND)
As a student and currently do not have my own income, I still have to depend on my
parents to pay the necessary expenses in life. Most of my spending is in the middle, which
is quite reasonable. However, I judge myself that my spending on Shopping, entertainment,
and junk food is quite high. For this reason, I think I should lower my spending on these.
With the amount of 450,000 VND saved per month, within 5 months I will have 2,250,000
VND in savings. However, I will have to apply budget savings to buy a camera,
specifically the Canon Power shot SX400IS Camera that costs 3,900,000.
Describe Initial payment Amount to be Amount saved

amount spent
1 Shopping 700.000 550.000 150.000
2 Snacks such as cake, 250.000 200.000 50.000
candy, milk tea,...
3 Entertainment 800.000 650.000 150.000
Total 1.750.000 1.400.000 350.000
4
Initial savings 450.000
Total savings 800.000

If I apply the savings for 5 months as I have described, I will have a total of 800,000 x 5 =
VND 4.000.000 in savings. Therefore, I can buy the camera and have 100.000 VND left
after the transaction.
III. Long-term financial plan for 5 years.

As a Digital Marketing student of FPT University, in the future, I hope I will become a
Marketing department, whose salary fluctuates at 20 million a month.
Total salary a year = 20 million X 12
= 240 million VND
When I go to work, I will not have to pay for housing because I work in an office in the city
center, and my house is quite close. At that time, I just have to pay for travel, insurance,
meals, shopping, entertainment or some other incident.
In 5 years, to open a small Coffee shop, I will need a sizable savings.
Describe Amount to spend

1 Space costs 180.000.000 / 1
year
2 Cost of design & investment in facilities 100.000.000
3. Cost of buying materials for the cafe 20.000.000
4 Cost of maintaining the coffee shop business(pay 50.000.000
electricity, water, and salary for employees)
5 Others 20.000.000
TOTAL 370.000.000
Every year I spend 140 million on living and payment, I will save 100 million / year.
Savings after 5 years = 100 million X 5
= 500 million VND
5
The amount to open a coffee shop is 370 million. Thus, after successfully opening a coffee
shop, I will still have 130 million left, then I will deposit this remaining amount in the bank
to save.
IV. Reference
 https://www.fool.com.au/definitions/financial-independence/
 https://timo.vn/blogs/doc-lap-tai-chinh
 https://www.prudential.com.vn/vi/blog-nhip-song-khoe/len-ke-hoach-ngan-han-va-dai-
han-hieu-qua-voi-7-meo-don-gian.

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FACULTY OF BUSINESS

Name : Nguyen Thi Thanh Thuy

Supervisor: Tran Khanh Trang

1. Definition of Financial Independence

Financial independence is assessed based on the following 5 specific factors:

2. What is a short-term financial plan?

3. What is a long-term financial plan?

II. Short-term financial plan for 5 months.

PER MONTH PERSONAL EXPENDITMENT TABLE

Describe Amount to spend Rating level

Describe Initial payment Amount to be Amount saved

III. Long-term financial plan for 5 years.

In 5 years, to open a small Coffee shop, I will need a sizable savings.

Describe Amount to spend

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