PERSONAL INCOME
MANAGEMENT
At a Special Program on
Finance
Organized by Deen
Foundation on Sunday 3rd,
May 2015
at Deen Foundation Schools,
Ekpan Warri Delta State
Lecturer Akintunde Haroon
ACIB,MNIM
SCOPE OF DISCUSSION
 Introduction
 Definition
of terms
 Understanding the Basic Concepts
 Is there any preferred investment
 Protect your investment
 Housekeeping, Planning and budgeting
 How do you increase income
 Monthly Receipt & Income
 Advices
‫‪INTRODUCTION‬‬
‫الحمد هلل الذى جعل فى تعاقب الليل والنهار عبرا وفى تصرم الشهور واألعوام‬
‫سماء بروجا‬
‫مزدجرا ومذكرا وأشهد ان الاله االّ هللا وهو الذى جعل فى ال ّ‬
‫شمسا سراجا وقمر منيرا وهو الذى جعل الليل والنهار خلفة لمن‬
‫وجعل فيها ْ‬
‫اراد ان يذكر او اراد شكورا وأشهد ّ‬
‫ان مح ّمد عبده ورسوله ارسله هللا بين يدى‬
‫الرسالة وأدى‬
‫ال ّ‬
‫ساعة بشير ونذيرا وداعيا إلى هللا بإذنه وسراجا منيرا فبلغ ّ‬
‫األمانة ونصح األمة وجاهد فى هللا حق جهاده فصلى هللا عليه وعلى اله‬
‫وأصحابه والتابعين وتابعيهم بإحسان إلى يوم التغابن‪.‬‬
‫‪Experience has shown that the financial‬‬
‫‪prosperity of an individual is directly related to‬‬
‫‪efficiency in managing disposable income.‬‬
‫‪Personal income management addresses basic‬‬
‫‪issues required for an individual to manage‬‬
‫‪disposable income through excellent planning‬‬
‫‪for consumption, savings and investments. The‬‬
DEFINITION OF TERMS
Management: It is the process of getting things
done through others.
Personal income management: It is the
process of getting your income to work for you
through others.
Management of personal income: This
involves the creation and maintenance of a
structures that can generate personal income
and also sustain it. The structure naturally
involves yourself, your spouse and some
external organizations that provide the
platform for income generation.
UNDERSTANDING THE BASIC
CONCEPTS
Risk:
this concept states that the
future economic benefit of an
investment is uncertain.
Return: This is the future
revenue expected of an
investment. It comes in the form
of salary rent, dividend, profit
IS THERE ANY PREFERED
INVESTMENT?
To determine whether there is a preferred
investment, we have to know the different
types of asset as well as their attributes.
A- Human Asset: This involves investing in
yourself and members of your family. This
is the greatest asset you can have because
with human resource anything is possible.
B- Land: A key financial characteristics of
land is that it appreciates in value. The
other characteristic is that it can earn rent.
 THE
PROTECT YOUR
INVESTMENTS
FIRST SOUND PRINCIPLE OF
INVESTMENT IS SECURITY FOR THE
PRINCIPAL SUM.
 THE
PENALTY OF RISK IS PROBABLE
LOSS.
 ENSURE
SECURITY FOR YOUR
PRINCIPAL SUM I.E. CAPITAL INVESTED.
 DO
NOT BE TEMPTED BY
OPPORTUNITIES THAT WILL PUT YOU
HOUSE KEEPING, PLANNING AND
BUDGET
There is need to plan for housekeeping and
school fees. It includes domestic staff
salaries, house maintenance electricity,
water, telephone bills generator and
other utilities.
Budget is the financial projection made,
based on certain assumption for the year
ahead. It contains financial guidelines for
the future plan of action for a selected
period of time.
Most of us work hard for our money.
THERE IS NEED TO INCREASE
YOUR INCOME
One of the best ways to mitigate against
continuous increase in prices of commodity
goods and services termed inflation is to
increase your income.
The present economic situation in the
world proves that price stability cannot
be achieved for a longer period of time.
Hence, increase in income becomes
inevitable.
There are three ways to increase income
MONTHLY RECEIPTS AND PAYMENT
It is a good habit to write down your income
and expenses. This will ease comparison
and goal achievement.
The write- up will be divided into two which
are receipt and payments.
The receipt side will show income which may
either be fixed or variable income.
Fixed income is income that is set each
month. Variable income on the other side
can fluctuate each month.
The payment side is divided into fixed and
variable expenses. Fixed expenses are those
payment and expenses that are regular and
advices
 Avoid
debt as much as possible: Debt
adds tremendously to your stress. Debt
reduces your options
 Shun interest related debt: interest you
pay eventually reduces your standard of
living because your interest payment is
an expense that brings you no value.
 Try as much as possible to live according
to your budget
 There is something about giving that help
you put your situation into perspective. It
SUMMARY










KEEP A PART OF YOUR EARNINGS.
BUDGET FOR NECESSITIES & CONTROL YOUR
EXPENDITURES.
PUT YOUR RETAINED EARNINGS IN INCOMEBRINGING INVESTMENTS.
PROTECT YOUR INVESTMENTS.
INVEST IN PERSONAL AND VALUABLE PROPERTY
OR BUY A HOME FOR YOUR FAMILY.
PROVIDE FOR YOUR FUTURE OR OLD AGE AND
THE EASE, COMFORT AND SUPPORT OF YOUR
FAMILY.
CULTIVATE / DEVELOP YOUR OWN POWERS OR
INCREASE YOUR ABILITY TO EARN MORE INCOME
BY BECOMING MORE PROFICIENT (SKILLED OR
COMPETENT) ON YOUR JOB.
MAXIMIZE OPPORTUNITIES.
FOLLOW THE SUCCESS PROCESS.
DEVELOP POSITIVE ATTITUDES.
CONCLUSION
Planning and monitoring your budget will
help you identify wasteful expenditures, adapt
quickly as your financial situation changes, and
achieve your financial goals. When you
actually see the breakdown of your
expenses, you may be surprised by what
you find; this process is essential to fully
grasping how things can add up.
Creating a budget will decrease your stress
levels because, with a budget, there are no
surprises. Unexpected car problems or
medical bills? That dream vacation your
best friends are planning? With a budget,