This short paper will speak about personal financial goals such as, short term and long term financial goals, personal financial plans, personal balance sheets and personal income statements. Although I chose to not release my financial information, I will be speaking about a character named John Devens whom is a project manager, although has some debt, he makes decent money.
Short term goals are goals that can be achieved within one to two years and can be items such as purchasing furniture for your home or even a minor repair to your home (Financial Engines, 2016). A long-term goal is a goal can take more than 5 years to achieve. Items that can be related to long term goals saving for your child’s college, a down payment for a new house or even a retirement plan (Financial Engines, 2012). …show more content…
The best way to look at the big picture is to use a financial goals worksheet where you can list your short term and long term goals, assign a priority number to it, the value of that goal and a date to achieve the goal. I believe this is the easiest and most efficient way to capture priorities and should be the first step in designing a personal financial plan.
The next step can be a financial objective sheet which is a form that helps you to geared to assist you in goal setting. Items listed in this form can range from goals such as becoming financially knowledgeable to starting a family. The items that ranked crucial on the list for John Devens are, becoming financially knowledgeable, increasing investment diversity and caring for parents.
A personal balance sheet is added to the mix where you enter in your assets and debts. After the data is entered, your net worth is calculated. Mr. Devens net worth is valued at