Financial Planning Essay
1.How can using personal financial planning tools help you improve your financial situation? Describe changes you can make in at least three areas. Personal financial planning helps you create a stable future and improve helps create a stable future and improve your financial status by creating a plan that lets you save and invest your money so that it can start working for you. A comprehensive financial plan can enhance the quality of your life and increase satisfaction by reducing uncertainly about your future needs and resources. The advantages of personal financial planning can 1. Increase effectiveness in obtaining, using, and protecting your financial resources throughout your lifetime. Secondly, increase control of your financial affairs by avoiding excessive debt, bankruptcy and dependence on others for economic security. Lastly, improve personal relationships resulting from well planes and effectively communicated financial decisions. A sense of freedom from financial worries obtained by looking to the future, anticipating expenses, and achieving your personal economic goals.
2.Explain the life cycle of financial plans and their role in achieving your financial goals. Financial and personal satisfaction is the result of an organized process that is commonly referred to as personal money management or personal financial planning. Personal financial planning is the process of managing your money to achieve personal satisfaction. Every person, family or household has a unique financial position, and any financial activity therefore must also be carefully planned to meet specific needs and goals. To achieve these and other goals, people need to identify and set priorities.
3.Discuss the reasons for the changes in your goals and how you’ll need to adapt your financial plans as a result. For many families, one of the biggest sources of disagreements and aggravation is the subject of family financial planning. Before I became a mom I planned on just having fun, shopping all the time and taking road trips but the reason for the changes in my goal is because I have a daughter now I have to think about her and not just myself. Having control of my finances means a lot more than just getting control of money. It means getting a handle on my habits both thinking and spending as well as my short and long term goals. I need to adapt my financial plans by building new habits, reducing stress, controlling my spending and aligning priorities.
4.How should you use this information to make personal financial and career planning decision? After reading the current and projected trends with regard to the GDP growth, unemployment, and inflation. I plan to finance wisely and not spend money all crazy without a care in the world. I have a family now and I don’t want my daughter to struggle like I have too. As for my career I plan to have short and long term goals. I don’t expect to stay in one field, I always had the mindset to where I want to expand and explore different career path. I know things happen and the economy can be pretty messed up and I don’t want to end up jobless and have to stress about finding a new job so I plan to go beyond the dream I am chasing. However, just in case I was to end jobless smartly financial planning is a good thing to do because I can have money already in the bank and be able to pay my bills without going into debt. No one likes to struggle because all it does is cause stress and problems, so I plan to stay on the right track and that is continuing going to school and providing a stable life for my family.