...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 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 Financial Planning “Personal financial planning is only applicable to those nearing retirement”. How true is this statement? For instance, personal financial planning is only suitable for those who are nearing retirement and not for other age groups of people. We do not really agree with that statement. Because people in different lifecycle are indeed requiring different kind of needs and wants in their life, thus, financial planning is important for everyone who wishes to achieve their financial goals. In addition, when there are existence of needs and wants in our life, everything would cost us money because money is the medium of exchange in this era. Due to this matter, meeting the rising cost of living and improving the standard of living would be a problem when we do not plan our financial side carefully. Everyone wants to have a luxury life, good car, delicious meal and many mores but without a proper planning, it is impossible for anyone to achieve these goals. Therefore, a personal financial planning is vital especially for those who started to join the work force and also those who are retiring. What is personal financial planning mean to you? Personal financial planning can be defined as a systematic process that considers important elements of an individual's financial affairs in order to fulfill the financial goals. Basically it also includes the well preparation of the cash flow movements, priority allocations on the needs and wants, and many more. ...
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...Personal Financial Planning: Chapter One Concept Checks Concept Check 1-1 (pg 9): What steps should we take in developing our financial plan?1) Determining your current financial situation 2) Developing your financial goals 3) Identifying alternative courses of action 4) Evaluating alternatives 5) Creating and implementing a financial action plan 6) Re-evaluating and revising the plan What are some risks associated with financial decisions? Economic and Product Risk: Interest rate risk- changing interest rates affect your cost when you borrow and your benefits when you invest Inflation risk- rising prices cause lost buying power Liquidity risk- Some investments may be more difficult to convert to cash or to sell without significant loss in value Product risk- products may be flawed or services may not meet your expectations. Retailers may not honor their obligations Personal Risk: Risk of Death- Premature death may cause financial hardship to family members left behind Risk of income loss- Your income could stop as a result of job loss or because you fall ill or are hurt in an accident Health Risk- Poor health may increase your medical costs. At the same time, it may reduce your working capacity or life expectancy Asset and Liability Risk- Your assets may be stolen or damaged. Others may sue you for negligence or for damages cause by your actions What are some common sources of financial planning information? Printed Materials: newsletters...
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...University of Phoenix Material Personal Financial Planning Worksheet Directions Based on your readings and discussions in class this week, answer the following multiple choice questions. 1. The process of creating a detailed plan to meet your financial needs and prepare for the future is called personal financial planning 2. Which of the following is not one of the five major steps of the financial planning process? Collect and organize your financial information. 3. Which phase in life is commonly associated with focus on marriage, family, purchasing a home, and career development? Late 20s through your 40s 4. Which of the following is a benefit of having a college degree that can affect your financial planning? All of the above 5. Which of the following elements of a comprehensive financial plan involves analyzing future needs, such as saving for retirement or college funding for dependents? Securing basic needs Directions Respond to the following short-answer questions in 50-to 100-words: 6. People have different styles when it comes to handling their money. List the two things that affect your personal beliefs and opinions about financial planning. How well do you feel you manage your money? Can you spot areas for improvement in your money management style, and if so, where/how? Values (fundamental beliefs about what is important in life) and attitudes (opinions and psychological differences between people that affect their...
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...My Personal Financial Plan I. Current A. Description Currently I am a full time student, and senior, at majoring in Accounting and Finance. I do not have a part time job and do not plan to work until I graduate. I currently have taken out student loans to support myself through the rest of my college education. My parents pay for insurance payments for my car, cover my phone bill, and provide me with medical insurance. I pay for all the rest of my expenses, including rent, food, gas, and all other daily expenses. I currently have no investments and no substantial assets with a value of over $1000. I graduate in May and have signed a contract with KPMG to start work as an auditor in August after I complete the CPA. I will be auditing companies in the telecommunications industry as well as the financial industry. My starting salary is $47,500 a year plus benefits. I use a car that my parents bought me to commute right now but will purchase my own car and become 100% financially independent of them when I start work in the fall. B. Balance Sheet- (Find in Appendices- #1) C. Cash Flows Statement/Income Statement- (Find in Appendices- #2) D. Mission/Vision Statement Mission Statement- To secure financial stability with minimal leverage by age 50. To have the ability to be generous with my money and consistently give a larger percentage away every year while maintaining my standard of living. Vision Statement- When I start my job I plan to make...
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...1 How can the use of a personal spending diary assist you in achieving financial goals? A personal spending diary can assist in achieving financial goals because it is a physical document of all your spending. If you accurately track all of your purchases you can then look back at that to create a budget for yourself. You can then use that to keep you aligned with your spending limits. If you are spending cautiously you can begin to save and achieve success without the worry of overspending. 2 Which categories did you include for your spending diary? Also, indicate why you did or did not choose to track additional items on a separate basis. I tracked everything I have purchased since the class began. The categories I chose to stay organized...
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...One of the financial counseling operation supervisors, Ethan, has many leadership roles and performs several practices. Ethan is responsible for assigning personal financials counselors to different assignments. These assignments range from a few hours to six months in length. Connecting personal financial counselors with an assignment can be very time consuming. When a new assignment arrives the announcement is sent out to several personal financial counselors. Then the counselors bid on the assignment which then goes to the Office of the Secretary of Defense (OSD) for approval. Once approval goes through, Ethan creates a strategic plan to ensure the counselor is a good fit for the assignment and all assignment logistics are in place. The counselor is then briefed on the current assignment and Ethan emphasizes the importance of assisting our service members in a professional and productive manner. With ever-changing regulations on contracts, Ethan has to strategically implement these changes to provide a smooth transition for both the counselors and clients. Depending on the level of importance, Ethan either informs counselors of the new guidelines and requirements...
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...Part A A1 Current monthly income and expense budget for Matilda Current monthly income budget | | $ | Wages and Salaries (85 hours per month @ $30 per hour) | | 2550 | Total income | | 2550 | | | | Current monthly expense budget | $ | | Rent | 900 | | Public transport fairs | 160 | | Food | 500 | | Utility bills | 130 | | Entertainment | 300 | | Mobile phone | 60 | | Clothing | 50 | | Miscellaneous expenses | 100 | | Total expenses | | 2200 | | | | Savings (per month) | | 350 | A2 Matilda’s goals and objectives on timelines Timeline 1: Goal of travelling overseas in 3 years when she finishes her degree Month | 0 | 1 | 2 | 3 | …… | 34 | 35 | 36 | Cash flows | 0 | 350 | 350 | 350 | …… | 350 | 350 | 350 | n=36, r=0.5%, C=350, PV=0, payments are made at the end of each period. FV=C*PVIFA(n,r) =C*[(1+r)^n-1]/r =$350*[(1+0.005)^36-1]/0.005 =$13767.64 Timeline2: Objective of buying a unit after she has worked for 5 years. Month | 48 | 49 | 50 | …… | 70 | 71 | 72 | 73 | 74 | 75 | …… | 106 | 107 | 108 | | Cash flows | 0 | 1400 | 1400 | …… | 1400 | 1400 | 1400 | 2100 | 2100 | 2100 | …… | 2100 | 2100 | 2100 | | Month 48 – 72: n=24, r=0.5%, C=1400, PV=0 FV1=$1400*[(1+0.005)^24-1]/0.005=$35,604.74 Month 73 – 108: n=36, r=0.5% FV1’=$35,604.74*(1+0.005)^36=$42,607.50 C=2100, PV=0 FV2=$2100*[(1+0.005)^36-1]/0.005=$82,605.82 At the end of month 108: FV=FV1’+FV2 =$42,607.50+$82,605...
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...Assignment 4: Interview with a Creditor For my interview I was unable to meet with someone face to face since I have a full time job and classes to tend to. I emailed a creditor by the name of Alex Orr at First Bank and Trust in Lubbock, Texas. He was very helpful when answering questions. Before I emailed Alex Orr my questions I decided to answer them in my head. After reading the answered questions I was very wrong about my creditor assumptions. My first question that Alex answered was about what drawled Alex to being a creditor. Alex said that his father worked at the bank for many years. He began working at First Bank and trust as a Teller and fell in love with the type of service the bank gave its customers. I could tell right off the bat that Alex was in this business to help serve his clients not just to make money. While interviewing Alex I learned a vary valuable lesson. Alex shared with me the top two mistakes he see’s customers or clients make when either applying for or taking on debt. The first mistake is that he see’s clients not preparing and sticking to a budget is the single biggest mistake he has seen people make. He stated, “There are a lot of people that do not even know what’s coming in and going out of their bank account each month… Budgeting is critical”. This was really important for me to hear because I already try to keep a budget but have not yet taken on any debt. Now, that I am about to graduate and take on student loans in 6 short months I will...
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...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)....
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...My Personal Financial Plan I. Current A. Description Currently I am a full time student, and senior, at majoring in Accounting and Finance. I do not have a part time job and do not plan to work until I graduate. I currently have taken out student loans to support myself through the rest of my college education. My parents pay for insurance payments for my car, cover my phone bill, and provide me with medical insurance. I pay for all the rest of my expenses, including rent, food, gas, and all other daily expenses. I currently have no investments and no substantial assets with a value of over $1000. I graduate in May and have signed a contract with KPMG to start work as an auditor in August after I complete the CPA. I will be auditing companies in the telecommunications industry as well as the financial industry. My starting salary is $47,500 a year plus benefits. I use a car that my parents bought me to commute right now but will purchase my own car and become 100% financially independent of them when I start work in the fall. B. Balance Sheet- (Find in Appendices- #1) C. Cash Flows Statement/Income Statement- (Find in Appendices- #2) D. Mission/Vision Statement Mission Statement- To secure financial stability with minimal leverage by age 50. To have the ability to be generous with my money and consistently give a larger percentage away every year while maintaining my standard of living. Vision Statement- When I start my job I plan...
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...reduce workforce, which resulted in leaving highly educated people without a job. Some of the unemployed people are considered to be over-qualified for jobs where employers are not able to offer high salary, leaving the unemployed jobless for a long time. The issue has caused a negative effect on the economy. The unemployment issue is blamed for the high rate in mortgage foreclosure. When a property is mortgaged, the bank holds the property as collateral on the loan. If the homeowner fails to pay the loan, the bank can take legal action to claim ownership of the home. This action is referred to as a foreclosure. Many homeowners depended on two incomes to manage the monthly bills. The lost wages from an unemployed spouse can create extreme financial hardship, which affects holding on to a home mortgage. With limited choice, these families are forced to walk away from their homes. These once highly skilled workers spend many months, even over a year looking for employment. Usually a bank will give the homeowners a little time to catch up on the missed payments. Eventually, the lender of the home mortgage will step in and foreclose the property after the home owners default on their payments. My proposal will provide a mathematical modeling analyzing the unemployment rate in the state of Florida with relationship to mortgage foreclosure. This model will provide a linear equation that expresses the relationship between the unemployment rate and mortgage foreclosure in Florida. In addition...
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...In the fall of 2008, I began 7th grade at Oak Avenue Intermediate School. Prior to 7th grade, my life had consisted of daily school and afternoon homework programs. I was shadowed by my parents and I had never travelled beyond my neighborhood on my own. That year, many things changed. The Financial Crisis of 2007 had just occurred; in the earlier years of the 2000s, my family had taken a loan to purchase real estate properties. With the Financial Crisis, property prices plummeted and my family was at a loss. Due to the circumstances, I travelled to school approximately two miles away each day on my bicycle and withdrew from the afterschool programs. Concerns about finances consumed my parents’ time. It was at this time that I immersed myself...
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...It was called to my attention that I have exceeded my number of units in order to qualify for financial aid. When I first started going to Allan Hancock College I had to be a full time student in order to stay on my fathers health insurance at that time. I had no choice but to take classes I did not need. Since the new health care bill passed, I am able to take classes required by my major. I am in the dental assisting program and it is require that we are CPR certified and I’m up for renewal. I have to be certified before summer in order to be qualified to take the state board exam. By adding an additional course along with second semester courses for the dental assisting program I have maxed out my units. As of right now I am not currently employed and I’m using my savings/financial aid to get by with school. I tried working part time while being a full time student in the program(my first attempt) and...
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