Financial Planning Assignment
1. From the goal setting sheet choose two monetary goals – one that will be achieved during this school year and one that is intermediate term (2 to 5 years). Reproduce the goals you chose – include the amount needed, months to achieve, action to be taken, and priority. For each goal, identify one constraint or reason why you may not reach the goal. (2 marks)
A short term monetary goal that will be achieved during this school year is for me to save enough money to purchase an iPhone and have enough money to not only pay for the purchase price of the iPhone, but some money to cover a couple of monthly plan fees. The amount that will be needed to accomplish this goal will be around $600, which will be achieved in about 3 months. My plan of action in order for this goal to be accomplished is to set aside $200 each month from my part time employment to pay for the purchase price of the phone and initial monthly payments, which is a high priority for me. One constraint that will prohibit me from reaching this goal is if there were to be an increase in the cost of the purchase price or an increase in the cost of plans.
An intermediate monetary goal that will be achieved in 2 to 5 years will be to pay off my car loan. The amount that will be needed to accomplish this goal will be $7,500 which will take 36 months (3 years) to be paid. I will do this by putting aside a set amount each week from my part time employment paycheck in order to complete this goal, which is a medium priority for me as it will take 3 years to be paid. One constraint that will stop me from completing this goal are all the account expenses that I will have to incur as a result of being a car owner (ie repairs, gas, insurance).
2. Name two recent trends that you identified in the Monitoring Current Economic Conditions sheet. How will these trends influence your