...Step 1: Set Smart Goals During the Financial planning process of setting goals, making a plan to conquer the goal, and then putting the plan into action are very important. When setting goals remember they are crucial, because learning how to create clear goals is a key to success throughout life. Goals set should be SMART goals, specific, measurable, attainable, realistic, and time bound. A goal should not be vague, it should be precise and descriptive. A goal should also be able to be measured with time and money, plus it should be achievable. Goals should also be practical, and have a specific time period when they are going to be completed by. An intermediate SMART goal set for my friend is to buy a new pair of Nike running sneakers for one-hundred dollars in five months. Step 2: Analyze Information Step 2 in the Financial Planning process is analyzing information, finding out where the money saved weekly is coming from and where it’s going. For a week on average your income is ninety one dollars. This money comes from a job, chores, babysitting, birthday, and Christmas money. Your average spending per week is sixty two dollars. Your money is being spent on gas, lunch, clothes, and concert tickets. The difference between the two is twenty nine dollars left over each week, which is more than enough to save for a new pair of Nike sneakers. Step 3: Create a Plan Step 3 is also known as a financial roadmap. Making choices about money is difficult, dealing with money brings...
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...Personal Finance Personal finance is “financial planning for individuals. Generally, it involves analyzing their current financial position, predicting short-term and long-term needs, and recommending a financial strategy. This may involve advice on pensions, school fees, mortgages, life insurance, and investments.” This definition truly touches on the key elements of personal finance. It is important to develop a strong in the personal financial planning process, because ultimately it can lead to achieving life goals. By analyzing your current situation and setting a plan with goals you are on your way to a good start. Personal financial planning is the process of managing your money to achieve personal economic satisfaction (Kapoor, pg. 3). By creating a personal plan as your first step, you may benefit in many ways. A financial plan allows you to understand and protect your finances in each step of your life. You are able to be more organized, helping decrease the risk of excessive debt, foreclosure etc. You will also feel more at ease knowing where you are and where you are headed. In order to determine where you are headed in the future you need to begin by setting personal financial goals. There are different types of goals. Goals may be short term, achieved in the next year; intermediate, achieved in two to five years; or long term, achieved in more than five years. These goals should be integrated with each other. Short term goals should help lead you to...
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...Personal finance Final paper In my paper I will summarize everything I learned in this course about personal finance, talk about the steps to a healthy financial life and discuss the basics of personal finance. What is personal finance? 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. It includes making financial decisions, developing and achieving financial goals, financial planning, budgeting, tax management, money management plan , use of credit cards, borrowing, saving plans, major expenditures, risk management, managing debts, investments, retirement planning, and estate planning. Personal financial planning is the process of managing your money to achieve personal economic satisfaction. Why is financial planning important? A good financial plan can enhance the quality of your life, the planning process allows you to control your financial situation; Increased effectiveness in obtaining, using, and protecting your financial resources throughout your life, Increased control of your financial affairs by avoiding excessive debt, bankruptcy, and dependence on others, Improved personal relationships resulting from well-planned and effectively communicated financial decisions. A sense of freedom from financial worries obtained by looking to the future, anticipating expenses, and achieving personal economic goals. Financial...
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...Reflection Paper AB 104 Personal Financial Management Dana Gitzlaff October 7, 2014 Reflection Paper The first key element we learned about was setting specific goals about what we want to do with our life and our money. In both our professional lives as well as our personal lives, finances have a profound effect on achieving those goals. Setting a goal to travel in retirement years affects how we will plan our finances. Setting a goal for early retirement depends on how well we handle our finances in the present time. Home ownership, providing for the grandchildren’s college education, moving or changing careers will all be affected by how our finances are managed. Goals should then be prioritized in the order you want to achieve them with the exception of long-term goals like retirement which should be constantly maintained while working on the others. Setting goals will do little good unless a plan is formulated. Controlling your budget should be the first part of your plan and the second part should be how to get out of debt. After these two things are accomplished, decide what you want to do with your money to reach your goals. Creating a budget allows you to create a spending plan so you can direct your money in a way that will help you to reach your goals. Once you have formulated your plans and have paid off debt, you are ready to begin investing and should speak to a financial planner to help you make your investment decisions. Preparing in advance for...
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...BUS 282 - Personal Finance Final Project – Creating a Personal Financial Plan Your final project will integrate what you have learned throughout the course into the core elements of a financial plan. Although not comprehensive, and in fact only the beginning of what should be a living document, this project will allow you time to organize and reflect on key areas of personal finances that you will need to address throughout your financial life cycle. Assignment Requirements: * Using the following prompts, please develop a narrative explaining how you can integrate the content covered in this course into your personal financial plan. * Draft your response in MS Word, using 12-point, Times New-Roman font, double-spaced, 1-inch margins. * Provide a cover page with your name, class, assignment title, and date. * Number all pages. * Provide headings for all topics covered in your plan for easy navigation (heading outline provided below). * As always, carefully proofread and spell check before submitting your final draft. * I DO NOT GRADE ON QUANTITY BUT RATHER QUALITY OF WORK. Nevertheless; this is you FINAL PROJECT (worth 15% of your total class grade) and all points must be THOUROUGHLY addressed. * If you have questions, do not hesitate to ask me. Please use the following prompts as the headings for your financial plan: Part 1 – 10% -Overview: Review exhibit 1-1 in your textbook (page 5) and describe your life stage. In addition...
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...Personal Budget Summary and Findings ACC 547/Taxation Michael De Marco Personal Budget Summary and Findings Memo DATE: October 1, 2012 TO: Henry and Mary Jones FROM: RE: Follow-up on Financial Planning Meeting It was a pleasure to meet with both of you to discuss your personal finances, your financial dreams, and concerns. As we discussed, being in control of your personal finances, and not your finances being in control of you, is very important. When you are in control of your finances you can achieve your financial goals and comfortably provide for you and your children. Below is a summary of my findings and recommendations for you to help achieve your goals. You will also see attached your personal budget that you provided and the balance sheet and cash flow statement I created based on the financial data you provided me. Summary of Facts Henry is 37 and Mary is 38. Henry and Mary have two sons, ages three and one. Henry has a high school education and Mary has a master’s degree in Library Science. Henry is a truck driver for a major oil company and earns a yearly income of $95,000. Mary works as a librarian for the local school district and earns a yearly income of $50,000. Two major concerns regarding Henry and Mary’s financial position is the lack of savings and debt. They have very little money in savings and a large amount of debt. Their goals are to pay off their debt and fully fund college funds for both their children. Summary of Key...
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...below link http://www.uoptutors.com/FIN-420/FIN-420-Week-4-Learning-Team-Assignment-Market-Analysis-Proposal FIN 420 Week 4 Learning Team Assignment Market Analysis Proposal Your team is a Personal Financial Planning team. Your client has hired your firm to provide an overview of common investment options, explain the current financial environment, and recommend the most suitable investment options based on personal financial goals. Determine and agree on assumptions for your client’s personal goals and tolerance for risk (as you identified for yourselves in previous weeks; you may change or add goals, if desired). Resources: Key websites from the margins of Focus on Personal Finance Write a 1200- to 1,500-word proposal using MS Word® in which you address the following (each bullet should be a separate APA section header): • List your client’s personal financial goals. • Summarize the risk and return of three common investment options. • Explain the current financial environment with regard to economic conditions, investment options, and your client’s personal financial goals. • Describe the Investment Risk Tolerance of your client. • Make a recommendation to your client as to which investment options would help your client reach his or her personal financial goals. (Collaborate on this first in the team forum with each member submitting one recommendation for discussion and agreement on the best one to include in the proposal.) - Your proposal may be...
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...Personal Finance: Turning Money into Wealth, 6e (Keown) Chapter 1 The Financial Planning Process 1.1 Facing Financial Challenges 1) Once a sound financial plan is in place, there should be no need to ever change it. Answer: FALSE Diff: 1 Topic: The Financial Planning Process AACSB: 3. Analytical skills 2) When comparing two different investment opportunities the investor should always choose the investment that minimizes the total amount of taxes paid. Answer: FALSE Diff: 2 Topic: Minimization of Taxes AACSB: 3. Analytical skills 3) Being financially secure involves balancing what you earn with A) your investments. B) what you spend. C) your retirement plans. D) your current level of debt. Answer: B Diff: 1 Topic: Financial Planning AACSB: 3. Analytical skills 4) In order for your financial plan to be realistic and attainable it needs to be based upon your A) budget. B) income level. C) number of tax deductions, exemption, exclusions, and credits. D) balance sheet. E) none of the above Answer: B Diff: 2 Topic: Financial Planning AACSB: 3. Analytical skills 5) Personal financial planning can help you to A) deal with unplanned health issues. B) minimize your tax payments to Uncle Sam. C) minimize your chances of personal bankruptcy. D) have enough money for a comfortable retirement. E) all of the above. Answer: E Diff: 2 Topic: Financial Planning AACSB: 3. Analytical skills 6) What are common factors found...
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...Personal Financial Plan Part 1 Laura Grundowski Abstract This paper will discuss the beginning of my personal financial plan. It will also outline said plan into a budget that will be put to use throughout the next few months. Budgeting is a vital part of managing one’s personal finances. When beginning to budget one must pinpoint the sources of cash inflows and cash outflows. Having knowledge of your personal financial situation is also necessary in managing personal finances. If done right, personal financial statements provide information on current financial positions and help pave the way for financial success. Goal setting is most successful for me when I begin with short term goals. For short term, one of my goals is to establish a short vacation fund with which I can go on a birthday weekend vacation somewhere up north. I estimate that I will need roughly $400 by January 1st, and that I will need to save $34 per week for the next few months to achieve this goal. A second short term goal is to save pay off my $400 credit card balance on my Capital One. I estimate that I can make payments of about $80 per month for the next 5-6 months to pay the balance in full with additional interest that will accumulate. My intermediate goal is to begin saving for a wedding. Once my credit card bill is paid off, I can switch the $80 payment from the credit card to this goal. At the time of purchase, I expect to have saved $4,800. Although I will have some help from my parents...
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...Personal Responsibility Kathleen Donovan Gen/200 October 13,2014 Kristine Faultner Personal Responsibility Personal responsibility is the ideal that a structure of set behaviors should be employed by one’s volition to hold one’s self accountable in daily life to meet personal, fiscal and educational tasks to successful completion. These behaviors have a rule governing the consequences due to action or inaction by the individual. Consequences are either positive or negative in nature regardless of being personal, educational or work related. Throughout daily life, we all have obligatory responsibilities as well as self-imposed responsibilities. It is often heard that someone would rather point the proverbial finger for their failures toward someone else or some outside cause. In truth, as individuals, personal responsibility is accepting the outcome of either a good or bad decision and learning from it. In matters of business and family, issues arise, and decisions are sometimes unclear. These may be due to an unhealthy family bond or strained relationship. At times, people tend to make poor decisions with their emotions rather than facts or the weighted measures for outcome. As people, we at times tend to fail to see the long projected outcome over a short term goal. In matters of finance, one must not take on a greater financial burden than one can bear. Dr. Muir’s article sites an excellent demonstration of a person that had great examples of personal responsibility...
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...What is financial literacy and why is it important? Financial literacy is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. More specifically, it refers to the set of skills and knowledge that allow an individual to make informed and effective decisions through their understanding of finances. Financial literacy involves a number of different areas of understanding. Learning about money and how it works is an important aspect, as well as understanding products like credit, loans, and investments. Competency in managing money appears to be a skill that doesn’t come naturally to everyone. Unless a person is exposed to the practice of money management, he/she is less likely to understand how it works and it long-term benefits. Without a financial education, it is easy to develop poor spending and financial habits resulting in significant negative consequences such as a poor credit rating, denial of credit, rejection for a checking account and bankruptcy, to name a few. Early financial literacy is the best way to prevent such consequences. In essence, personal financial literacy is much more than managing and investing money. It also includes making all the pieces of your financial life fit together. Achieving Financial Success you must understand and determine where your money goes. Here’s how you can start: Analyzing cash flows Taking advantage of opportunity cost. Taking control of your spending. Continued...
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...AFIN310 Issues in Applied Finance Financial Planning Assignment: Questions & Answers General Questions 1. Is an introduction / executive summary and conclusion required? No. You are to answer each question and keep to a total maximum of 15 pages, excluding cover page. No marks will be provided for anything written on page 16 or beyond. Students are recommended to refer to the mark allocation when answering each question. 2. Is specific formatting required? Eg The font you can use is Calibri, size 12. The document should have 1.5 spacing There are no specific formatting requirements, unless there are standard university or department formatting criteria of which students should be aware. 3rd year students are expected to submit assignments which are easy to read and look professional. 10 marks are allocated to presentation, length, references and bibliography. Question 1 3. Question 1(a) are real-life examples required or I can simply make-up an example? Personal and/or made-up examples will not be sufficient. There are numerous Australian real cases that can be referenced. The preamble to the question refers to "Australian scandals involving financial planning firms, practices and advice". You are required to limit the use of examples to publically available information about the provision of financial advice in Australia. 4. Question 1(a) How many examples will be considered sufficient? Marks are not allocated based on the number of examples provided, rather on the quality of...
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...problem of household financial management. It discusses the relationship between mothers spending behavior and their knowledge in financial management. Related literature According to Lusardi and Mitchell, 2009 financial knowledge is Increasing knowledge about the financial matters that enhances an individual’s ability to make informed decisions about how to control and manage their finances. Financial knowledge has implications for how individuals spend, save and invest money, as well as how they budget and set monetary goals. Research shows that lack of financial knowledge is related to debt (Norvilitis et al., 2006) and increased knowledge can lead to individuals engaging in positive financial practices and fewer risky ones (Borden et al., 2008; Hilgert, Hogarth, & Beverly, 2003). Adults with better financial knowledge are more likely to plan for retirement and engage in financial practices that lead to asset accumulation. Normally, gains in financial knowledge can be tested immediately upon completion of the program, by asking participants a set of questions that cover a range of personal finance topics. Ideally, both pre and post-tests should be implemented to effectively assess a program’s impact on individuals’ financial knowledge, assuming that participants have had long enough exposure to program interventions (NEFE, 2013). Borden et al., 2008 attitude toward financial matters and practices is an important predictor of financial behavior. Attitudes, values and beliefs...
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...All about Personal Finance “Money is hard to earn and easy to lose. Guard yours with care.” a quote from Brian Tracy which tells about money just passing by in our hands because of wrong management. Another quote is from Natasha Munson which tells about “Money, like emotions is something you must control to keep your life on the right track.” This means we must know ways to maintain or control our money so that our life will be financially stable. That’s why I will tell you all about Personal Finance to help you manage your money. Personal Finance is about learning to manage income and wealth to satisfy desires in life or to create more income and more wealth. It is about creating productive assets and about protecting existing and expected value in those assets. Personal Finance is very significant to our lives and some of the reasons are; first, it gives us self confidence, because we handle our financial problems under our control and we make more peaceful and better decisions. Second, saving for emergencies, you will not fear of crisis or surprise events which require a lot of money because you are already prepared financially. Third, saving for retirement, this is helpful for future purposes. Personal Finance includes about wealth, but what is wealth? Wealth is the abundance of valuable resources or material possessions of economic value like money, real estate and personal property. An individual, who is considered wealthy, is someone who has accumulated substantial wealth...
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...Confirming Pages chapter 1 Personal Finance Basics and the Time Value of Money kap61647_ch01_002-033.indd 2 16/10/13 1:40 PM Confirming Pages Learning Objectives What will this mean for me? LO1-1 Analyze the process for making personal financial decisions. Every person has some money. However, the amounts and individual needs and choices are diverse. You now have the opportunity to learn about varied financial paths for avoiding common money mistakes. Your knowledge and actions will move you toward financial security. Despite economic uncertainty, you will be able to use wise financial strategies in every stage of your life to achieve your personal goals. LO1-2 Assess personal and economic factors that influence personal financial planning. LO1-3 Develop personal financial goals. LO1-4 Calculate time value of money situations associated with personal financial decisions. LO1-5 Identify strategies for achieving personal financial goals for different life situations. my life e HOW DO I START? One day, you may receive news that your aunt has given you a gift of $10,000. Or you might find yourself with an extensive amount of credit card debt. Or maybe you desire to contribute money to a homeless shelter or a hunger-relief organization. Each of these situations involves financial decision-making that requires, first, planning and then taking action. The process you use should be carefully considered so no (or only a few) surprises ...
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