Personal Finance Essay

Essay on personal finance goals
Figuring out where you will be financially years from now is hard to imagine. There are always
what you plan, and then there's things that just happen that you would usually rather not have of.
You can always make goals and things and hope that things go alright and end up close to what you
expected.
I am currently eighteen years old. I am working on setting up all my financial things so that I am
independent and can rely on myself for what I need and not have to worry about having my
parents approving of things and being responsible for what I choose to do. I am going to take out a
small loan soon and work on building up my credit history. I am also planning on transferring all my
things like my car and phone to my name. This summer I...show more content...
I will then purchase my own house and also a car. I will be paying insurance on both of these items. I
will work the rest of my life as a Nurse and will eventually retire at the age of 65.
Although I don't really know how well all of this will work out and I'm sure there are probably
easier ways to do all this, I don't think I will be talking to any professionals. I think I have enough
basic understanding in order to keep myself stable. Granted I will probably fall a couple of times
and make a few mistakes, I've been taught to keep working at it and you'll get it right eventually. I
know that in order to get what you want you have to try and work really hard. I don't believe in
being handed things, whether it be money or advice or anything else. I would rather try and fail then
have someone tell me what to and what not to do.
I myself believe in risks to an extent. I think they are alright as long as they are somewhat logical.
I don't believe in "jumping off a cliff with no ropes hoping to survive". I plan on having two
accounts, one checking and one savings. I will mainly work with my checking account and the
savings will not be touched unless for emergencies. I will keep a minimum of a thousand dollars
in my savings account, which I will be opening at a credit union since they have a slightly higher
interest rate, so I will always have it. I have learned to always keep a "safe" amount of
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Personal Finance Essay
Homework Assignment 4 FIN 202: Personal Finance D. Barber Professor Pogue 03/28/2013
Module 4 Homework I would recommend to my friend Steven Franklin to get the car checked out
by professional to get an estimate on repairs. He must first see if it was equipment failure or
installment failure. If it is in fact a malfunction of the stereo then I would have him call the
company's main office where they make the stereo to get them to pay for damages to the vehicle. I
don't think the company that he bought the stereo from would be liable. I would have him write or
email the company with the problem to see if can get resolved that...show more content...
After the recession, and the mistakes the banks made, the process to get financed will be tight so
a person's credit would have to be really good and a good down payment. Lenders can determine
from your gross wages and the interest rate what kind of monthly mortgage payment you could
afford which then helps you to know what price of home you could afford. The larger the down
payment and the lower the interest rate the larger price tag on a home you could look for. What is
the purpose of an escrow account and what costs are typically included? An escrow account is a
third party or lending institutions account that holds funds for transactions between two or more
people. The funds will be release when the instructions given are executed. Why the escrow account
is used is to hold monies used for the property taxes and homeowner's insurance. The cost for the
use of the service of an escrow account is typically built into the loan. What factors influence most
people's buying decisions? Location, location, location and maybe for the ladies a large kitchen, nice
bathrooms; and the guys a garage (a possible man cave or work shop) influence peoples buying
decision. Other buying decisions are calculations, needs, values, and opportunity costs. What are the
main sources of consumer information? The major sources of consumer information are personal
contacts, business organizations,

Personal Finance Research Paper
Adaora Mgboh
January 20, 2016
What is Personal Finance?
1.Describe how personal finance impacts you currently.
Currently, I do not make serious personal financial decisions, but I do try to save any little money I
have. Most of the money I have comes from my weekly allowance and gifts from various family
members. I try not to spend too much money unless there are things I really need to buy, such as
medicated lip balm from the winter, pencils, and other personal necessities. I also try not to keep
too much money on me when going out or even at home. I make a list of all the important things I
need to buy, and I check the total cost against how much money I have. Sometimes I have had to
delay buying certain items because the purchase would...show more content...
Because the state government rather than the federal government control schools in the United
States, the federal government may never be able to pass a bill that requires financial literacy
courses to be taught to all students from kindergarten to senior year. However, many organizations
are stepping in to prevent the reoccurrence of financial mistakes due to years of being misinformed
or uninformed at all about financial concepts. In order to raise a new generation of the financially
literate, parents and teachers need access to resources to be able to effectively educate the youth.
Parents are the most influential in a child's life, especially as it pertains to future financial decisions.
Therefore, the government and other organizations must enlist the support of parents in educating
children on personal finance

Personal Finance Reflection Paper
During this semester I have learned a lot about personal finance and what it takes to truly be
disciplined. I have learned multiple tips from budgeting and spending my money to investing my
money into funds that could grow my money for me.
Being a waitress it is a little more difficult to manage your money especially when you live off of
most of your tips. I have had to keep track of how much money I make every night and how much
money I spend knowing I have cash in my pocket. I now deposit all of money straight into the bank
so that I can keep track of my spending much easier through my bank statements. I have noticed that
I spend a lot more money than I realized I do and have tried to cut down on my spending.
I currently do not have a retirement plan set up. After taking personal finance this semester I know
that retirement is very important and I need to start one. Growing up I always thought there was
only a 401(k) retirement plan and I now know there are different kinds such as Simple IRA, Roth
IRA, Traditional IRA and many more. It is very important to know where you are investing your
money in an IRA so that you will know how much money you will have when you are ready to retire.
I have open credit cards but this class has just helped me understand more about the cards and
their terms. I need to be careful with credit cards because it is so easy to open a line of credit
without having to read the terms. It is not a bad thing to have a credit line; however, you should
know what you are getting into. You should know what the interest rate (APR) will be, if there
will be a grace period and what are the rates associated with the card. What are the rates for paying
your card late, getting a cash advance and going over the limit of your balance?
When buying an automobile or a house the "homework" you need to do for the purchase is
almost the same. You need to know how much money you can afford. This goes back to the basics
of personal finance and knowing what your budget is and how much you can afford each month.
You will need to save for a down payment on both an automobile and a house. When buying a car
there are websites like Kelly Blue Book and Edmunds that will help you know how much a vehicle is

Personal Financial Goals And Objectives Essay
Financial Plan is a written financial goal with define action plans that will help you to achieve such
goals. Planning is important to set deliberate actions that will guide you in reaching your goals. It is
even necessary when you are further from the set goal. When it comes to money, most individuals
would love to manage their personal finances so that they achieve maximum satisfaction from each
available currency. To achieve this goal, you must first identify the financial goals and set priorities.
Personal financial planning is the process through which individual manages their finances to
achieve maximum satisfaction. It does not matter if you are self–employed, highly paid executive or
newly employed staff; financial planning is important for everyone. It helps you to make optimum
use of your limited financial resources. Your personal financial plan allows you to set financial
goals with related action plan. This will help you to take control of your financial affairs. Think
about it, you may not need a map to move within a known city, but you will require direction when
strolling in an unknown city. Financial planning is about the future and the future is an unknown
city. Many people also think that it is lack of money that cause financial problems, however, this is
not correct in most cases. Check around the community, you will notice many well–paid employees
who are financially unsecured or a self–employed consultant who depends on bank loans for
survival. They lack

Things I Learned In Personal Finance
Did you know that the cost of raising a kid cost over five–hundred thousand dollars? This is one of
the things I learned in personal finance. Personal finance has taught me how to do many things. In
personal finance, I have learned about budgets, investing, saving, taxes, checking accounts, loans,
low–risk securities, medium–risk securities, and many other things. I learned many things during my
time in personal finance, but the things I believe I will affect my future most are budgeting, investing,
certificates of deposits, bank reconciliation, credit cards, resumes, and cover letters.
I learned many things about keeping track of my income and where to invest my income. While
taking personal finance, I learned more about budgeting. Budgeting will help me in the future as it
will help me keep track of where I spend my money. It will also help me plan for financial goals in
my life. I also learned more about investing. I learned about low–risk, medium–risk, and high–risk
stocks. While learning about investing, we covered certificates of deposit (CDs). I learned that CDs
are low–risk investments that have a higher interest rate than a money market account or a savings
account and that they are insured by the FDIC. This knowledge will probably lead me to...show more
content...
I learned many advantages and disadvantages of using credit cards. Our class was taught that
using credit cards had many advantages: rewards points for using credit cards, easy access to
money in case of emergencies, you are able buy things online, credit cards are universal unlike
many currencies, etc. However, our class also learned about the many disadvantages of using credit:
there is a potential for debt, potential for fraud, potential for identity theft, and many more things.
While covering the advantages and disadvantages of credit cards, I made the choice that in the
future I will get a credit card but only use when

Free Personal Finance That can change your life. Personal Capital Person capital is one of my
favorite tools to keep track of all my accounts. Its able to track your 401k and investments you
own. This website is targeted more towards the investestor. If your main concern is your net worth,
then this is the tool for you. Out the 2 free finance software, I enjoy using personal capital the
most. Favorite Features of Personal Capital Retirement Planner. I use this tool often ensure I'm on
track to retire. Sometimes I enjoy playing with the numbers and years to see how fast and how
much money I need to put away to retire sooner. With this feature you can plug in life changes like
changing of jobs, illness, having children, and saving for...show more content...
You don't even need a credit card to use this service. This nice bonus is great to have if your
personal bank doesn't provide this kind of service. The service also shows ways of improving
your score. Mint Bills. Since you can connect to all of your accounts, you can add any and all
bills you have, such as credit cards and loans. The great part is that, it will alert you when
upcoming bills are due. You can bill your bills with your bank account or credit card right on the
site. Weather your on your phone or computer, you can pay your bills remotely. Dislikes: Ad's and
Marketing: Nothing in life is ever totally free. Mint has to make their money somewhere, and they
do that by recommend products and services. Most of these services is to help save money or
reduce debt. Mint might make recommendations for services from their partners such as Fidelity and
Chase. Robinhood Robinghood is a free–trading app that allows investors to buy stocks and ETFs
without paying commissions or few. Robinhood offers real–time market data but little in the way of
research or tools. This app is only available for phones, no desktop or web version. If you ever
thought of investing and wanting to try, why not try something that is free and will not cost you a
dime to get started. I will go into more depth about investing in future post. Why I like Robinhood
No commissions You know I love free! Robinhood is the only app I know of that allows this kind of

The Importance Of Personal Financial Management
The Importance of Personal Financial Management
Personal financial management is one of the most important tasks every individual must undertake
if he or she wishes to have a comfortable life without having to constantly worry about his or her
financial future. Financial planning is the process of controlling what one does with his or her
money in order to reach a desirable individual economic standing and to secure one's financial future.
This can include spending, investing and saving. There are many important steps in creating and
executing a fiscal plan for oneself and one's family.
Prior to taking this course, I knew very little about financial planning. I had seen many people create
a budget, use credit, or even talk about investing for retirement, but I only had the slightest idea of
how to do so I read once that eight out of every ten Americans is indebted ("Eight out of Ten
Americans in Debt: Study," 2015). After reading that article I thought that money management was
going to be a tedious and strenuous activity since so many people have failed to manage their
finances successfully. However, once I began this course and began using the same methods on my
own finances, I realized that with a little planning, financial management is simple and can secure a
better financial future for yourself.
The first chapter of this book, Personal Finance Basics and the Time Value of Money, opened my
eyes to the important steps of managing one's finances. There are a total of

Personal finance is the principles implementation of finance to an individual's or personal's
monetary decisions. It involved the way of an individual or personal to gain, keep, spend and budget
monetary resources over time, and taking into account of different kind of financial risk and future
life events. Personal's wealth picture will determined by combining the personal finance knowledge,
education, financial decision, financial plan, goals and financial desire. The appropriate financial
management and improvement will help personal financer to see its positive impact in the next
several of decades.
By studying the personal finance, I know and understand the personal finance basic. First, I learn
how to create a financial plan. Financial plan is an evaluation process that predict...show more
content...
Now, I will manage my money by using the balance sheet and income statement. The balance sheet
help me to know and understand the asset that I own and the liabilities that I owe. This may help
me to determine the level of my wealth or net worth by subtracting the level of liabilities from
assets. While the income statement help me to trace my money, the income statement is like a
financial motion picture which show me where my money comes ( income ) and where I spent my
money ( expenses ). The income statement help me to control my daily spend and make sure that I
will not spending too much.
Apart from that, personal finance also teach me the importance of insurance. Personal finance make
me understand that I should protect myself from risk by buying an insurance. It also help me to
understand the life insurance that I needed and choose the appropriate insurance.
The personal finance is extremely important to me because it help me to create a good financial
plan and well control and manage my money. The knowledge of personal finance is very useful and
can well insert into our daily

According to our class text (Siegel and Yacht (2009)), we know that "personal finance is the
process of paying for or financing a life and a way of living." That said, we also know that using
accounting principles to manage our personal finances will likely yield great success in one's
tracking and planning, financially, in the long run.
Understanding the sources (incomes) and uses (expenses) of funds, and the budget deficit/surplus
that results, are core accounting measures to consider in short and long term personal financial
planning. Also, grasping key concepts like how your salary/wages are earned and segmented/taxed is
important in determining your net incomes. How to approach deficits and surpluses and their
associated action plans come from sound accounting understanding. Accounting develops controls on
how to deal with budget deficits like increasing income, reducing expenses and borrowing.
Understanding how sunk costs and opportunity costs factor into alternative choices and borrowing
come to us from sound accounting knowledge and play a role in personal planning. Lastly, through
various standard reporting approaches, we, though accounting, can develop the ability to look at
current and future personal finance decisions and health via income statements, balance sheets, ratios
and other common size book keeping measures.
Three products of accounting and bookkeeping procedures that are most useful in personal financial
planning would be (1) understanding and

Personal Economics : Personal Finance
The goal of this course is to get you thinking about personal finance issues at a point in your life
when you still have time to benefit from the power of time in generating wealth to accomplish
your other life goals. The financial decisions you make early in life with determine in great extent
the quality of life you will enjoy later, especially given the turbulent and uncertain economic
conditions. Money isn't everything, but a lack of it will impact almost every aspect of your life and
those who surround you. This course will provide the basis for your success not only by satisfying a
course requirement, but also by providing you the fundamentals to be financially secure throughout
your life. Concepts such as the time value of...show more content...
The project will be a planning effort using typical financial planning data from a college graduate
fully immersed in their career 5 years from now. Use fictitious data to protect your privacy,
although I will not share your projects. To protect your security please do not state whether the
financial data you use is real or fictitious. The goal of the planning project will be to set a person up
with a plan that will provide the greatest chance for long–term financial success. The plan you
develop will be summarized in a 4–5 page type written double–spaced report highlighting your
strategy and the financial vehicles you propose to use to help reach the financial goals set forth. –
Although not directive, goals would likely include establishing a college savings for children,
ensuring a comfortable retirement, and protecting the financial future of the family (if applicable) in
case of death or serious injury. – If student loans were a necessary part of college financing, how will
the repayment of these student loans affect the ability of the person to save in the critical years after
graduation. Examine the time value of money considerations that will impact any delay caused by
"repaying loans" rather than "investing" during this critical period. – Part of your analysis should
include a brief examination of Social Security and anticipation of the effect of changes that will be
necessary to that

Personal Finance And Social Finance
Personal Finance has always been an emotional topic in the United States. Today, many Americans
are generating unlimited wealth and living exceptional lives, while others are struggling to make
ends meet. Evidently, people's actions and beliefs are the deciding factors in their achievement of
wealth. Thus, this huge gap in wealth between rich and poor people has a special connection with the
philosophy and attitude of each individual toward personal finance. Merriam–Webster Dictionary
defined Philosophy as a set of ideas about how to do something or how to live. Therefore, each
person's philosophy is a major factor in how their personal finance works out since the knowledge
of facts, concepts, and principles will determine how people spend, save, and invest their financial
resources. Dr. E Thomas Garman is a renowned advisor and academic. Garman is the author of 30
books and 200 research articles in personal finance and consumer economics. Raymond E. Forgue
professor at the University of Kentucky, they stated, "You have to do only a few things right in
personal finance during your lifetime, as long as you do not do too many things wrong."(Garman
and Forgue 5) Clearly, many people are in the dark when it comes to personal finance, their
financial IQ is very limited. If only a few money principles done right is all people need to succeed
financially; evidently, they are missing some fundamental information. Sadly, some people do not
recognize this reality which is the

Assignment 02: Personal Finance
UoPeople
Written Assignment Unit 02
Personal Finance
Assignment Question What is accounting and how does it help you manage your personal finances?
b. Describe the three products of accounting and bookkeeping procedures that are most useful in
personal financial planning. c. How could personal financial software assist you in your personal
financial decisions?
Introduction
In this assignment paper, I would like to describe the meaning of accounting, how accounting helps a
person to manage his personal finances and also to describe the three products of accounting and
book–keeping procedures that are most useful in personal financial planning.
Additionally, I will explain how personal financial software could assist...show more content...
For example, when your receive a cash from your previous loan, repaying money that your
borrowed, or using money in exchanges such as buying or selling an asset. Hence, cash flow
statement is very important in personal finance because it tells a person how well he does at
creating liquidity and net income. (Siegel & Yacht, 2009)
The last one is the Balance Sheet which tells a person the lists of assets he has, the list of liabilities
he owes and the amount of capital he has. Normally, the lists of assets should be deducted from the
list of liabilities plus the amount of capital. The positive difference is the net worth and the negative
difference is the net–loss. Anyway, knowing your balance sheet will assist you to understand the
amount of net–worth you have or the amount of net–loss you incurred and the result is what
determines your subsequent decisions on your personal financial planning.
(Siegel & Yacht, 2009)
How Could Personal Financial Software Assist You in Your Personal Financial

The Personal Finance Course Essay
The Personal Finance course is one of the most practical courses that I took in my undergraduate
coursework. It reminds me how I can be a good steward and how I am responsible to manage,
protect and grow God's resources that were given to me. Knowing that God owns everything and
that we are accountable for how we are using His resources motivate us to develop a robust biblical
finance plan that integrates spending, risk management, and investment to reach our desired life
goals. My financial plan will include three main sections, money management section, risk
management section, and investing section. In the money management section, my husband and
I made a written list of all our goals that are related to our financial lifestyle, which include
securing our family's future spiritually and financially. We want to increase our giving and give
generously to create a healthier and safer world. We want to give $10,000 to do something for the
orphans in Egypt. Financially, we are trying to improve our income by acquiring higher degrees
to move up the ladder into more growth opportunities. My husband finished his second Master in
Business Administration, and I am trying to get my bachelor degree in the same field of study to
open new doors for our careers. Most importantly, we are determined to pay off the remaining
balance of $7,066 in our credit card debt and stop using all the credit cards (See PFP29). Moreover,
buying a house is the main goal that we are trying to reach now;

Personal Finance Lessons Learned
While taking the personal finance course this past spring, I learned many valuable lessons that will
greatly assist me throughout my life. One lesson I learned is the importance of paying yourself
first. To put this into action, I will save money in an emergency fund to have enough money to live
comfortably for 3 to 6 months, in case of emergency. Furthermore, this course has taught me the
importance of budgeting. Using budgeting, I will make a plan for my money, so I can avoid over
drafting and bouncing checks. Another lesson personal finance taught me is to pay all bills and
loans on time to develop a good FICO credit score, which is what companies use to evaluate the risk
of loaning to an individual. Knowing this information will help me...show more content...
By using a CD instead of a savings account, I will be able to make more money off of the award
due to CDs having higher interest rates since the money cannot be withdrawn until the end of the
term. This would not be problematic for me because if I were to receive the award, I would use
the money for college expenses to invest in my human capital, so I would not need it for two
years. Going to college will give me a financial advantage in the long run because according to what
I learned in personal finance, people with degrees tend to have higher paying jobs. Additionally, with
this award and scholarships, I might get through college debt free. This too would be extremely
beneficial to my financial situation throughout life because I would not have to worry about paying
off student loans and could instead invest in stocks or in my retirement funds. Furthermore, I love
volunteering and giving back to my community, so I also want to invest in nonprofit organizations
to help others find their way in life and allow them the opportunity to go to college, get a
well–paying job, and hopefully continue the cycle of giving back. Therefore, the money from this
award would benefit me for the rest of my life along with the community I will invest

Essay about Personal Finance
Assignment 2: Financial Planning
(25.0 points) 1. Describe one short–term goal that you have and at least one thing you will need to
do in order to accomplish that goal. (2–4 sentences. 1.0 points)
One short–term goal that I have is to graduate from high school. I will need to do all of my work and
do my best in all of my classes to accomplish that goal. 2. Describe one long–term goal that you have
and at least two things you will need to do in order to accomplish that goal. (2–4 sentences. 1.0
points)
My long–term goal is to go to college. I will need to finish high school with good grades. I will also
need to prepare a plan to pay for the college of my choice.
3. Describe two of your long–term financial goals, and...show more content...
TIP: This is the amount from question 7b above. ii. This employer was Jessie's only source of income
. iii. Jessie had no taxable interest. iv. Jessie was not an Alaska resident. v. Jessie has no spouse and
can't be claimed as a dependent by someone else. b. Fill out the Payments, Credits, and Tax section
of the 1040EZ form using the following information: i. The federal income tax withholding
information from Jessie's W–2 form. TIP: This is the amount from question 7c above. Social
Security tax and Medicare tax are not important to the 1040EZ form. ii. Jessie can't be claimed as
a dependent by anyone else. iii. Jessie is not claiming the Earned Income Credit. iv. Jessie is not a
member of the U.S. Armed Forces who served in a combat zone. v. Use the
Example_Instructions_1040EZ's tax table on pages 27–35 to find the amount that Jessie Robinson
owes. TIP: The Example_Instructions_1040EZ is in your Section_2 folder. c. Fill out the Refund
section by performing the calculations if the IRS owes Jessie Robinson money. Do not fill out the
bank account information section. d. Fill out the Amount You Owe section if Jessie owes the IRS
money. e. Do not fill out the Third Party Designee Section, the Sign Here section, or the Paid
Preparer's Use Only Section. f. Click the File menu, and then click Save so that your work is saved.
10. Describe at least two common types of variable expenses that

Personal Finance
Personal Finance
The basic aspects of personal finance seem to be obvious to a fair number of people. However, due
to the typical American education system, there are a vast majority of graduating high school
students that enter the so–called 'real world' without having any practical knowledge on how to
properly manage, spend, and invest the money they are hoping to make. The addition of a personal
finance course, such as the one just taken over this summer session, to a standard high school
curriculum would help assist future generations in enabling themselves to gain control over their
finances, and would thus help the country as a whole by reducing the national debt.
This course has taught me aspects that directly relate to my own financial...show more content...
These accounts, unlike traditional IRAs, are not tax deductible, but the amounts withdrawn are
subject to neither taxation nor penalization. However, becoming qualified to open a Roth IRA is
subject to federal income restrictions, and one can only have the account if they make within a
certain range of income per year. While IRAs are contributed to by the contributor themselves, a
401k plan is funded by an employer and a given employee. The money is drawn directly from the
employee's pre–tax salary, and the employer is obligated to place some money in the account as
well. There are limitations to this seemingly perfect plan, and they are sizable. One is not allowed to
place more than $18,000 per year in the account, there is no US Government insurance coverage over
the funds in these accounts, and the owner is restricted in regards to their investment

Managing Personal Finances Essay
Managing Personal Finances
Managing personal finances is an important skill to acquire. However, no where in school is this
subject taught. As a result of a lack of preparation, our society is subject to a high percentage of
people who lack financial success. Those who are successful at managing their personal finances
will find that they are successful in many other areas as well. To learn how to manage personal
finances there are books and web sites that provide a step by step guide to successfully managing
personal finances. Those who lack financial success often possess many of the same traits.
The first reason most people lack financial success is because they lack knowledge, or better yet, a
desire to gain knowledge....show more content...
This is similar to goal setting in respect to that one must dream to make a dream come true.
A big mistake commonly made by the financial failures is conforming. Listen to the advice of
mother's: "If so and so jumped off a cliff would you?" Don't do what everyone else is doing; dare
to be different! Don't be afraid to take calculated risks. This does not mean that you can actually
jump off of a cliff, because that would be a foolish risk, this means again to foresee the results and
consequences of your actions. The successful people in society are the ones who don't do the same
thing as everyone else. For example, look at the modern art. This type of art is so profitable
because it is so different from any other art created.
It is also important to beware of credit. Don't borrow excessively, because it will soon become
debt, which has interest and other consequences. Instead, set a budget and stick to it firmly!
Attitude is also an issue in financial success. If a person has a poor attitude, he will only get what
he deserves! If the worst is expected, the worst will happen. It all comes down to the power of one's
mind. Think positively! When setting goals, focus on the positive aspects, and don't include any
negative words. Everything can be rephrased to be positive. Successful people are optimists! In
order to be an optimist, only associate with optimists. The

Personal Finance Plan Paper
Michael's Personal Finance Plan scenario Michael is a 18 year old boy who has recently
completed his hsc studies and decided to stay at home and have a part time job for the next 5
years, he has $35 000 combining his total finances and he will earn $120 a week and has to pay
$60 a week to his parents. he also aspires to buy a small car while he is at university. spending As
michael is the recipient of a fairly low income he must manage his budgets well. Michael earns
$120 a week but $60 is given to his parents for living costs. This effectively leaves Michael with
$60 to spend on things he may need outside of necessities such as equipment, study gear, etc and
also for outings with friends or family, savings and investing. firstly, Michael should be aware of
avoiding unnecessary extravagancy, with a budget of $60 he cannot realistically afford to go to say
gold class movies or 5 star fine dining restaurants. he should limit his outings to certain gatherings
with friends and should limit the frequency of these outings to around once or...show more content...
one will be that he will be too poor to afford to pay his parents for stay or buy anything he may
need. if he goes into a defecit or below a certain amount the bank accounts, financial institutions
may intervene and suspend michaels bank account or give him a penalty, if the situation becomes
more serious than the bank may make Michael sell off his property to pay off his debts . this will
not only cause problems for michael but it can ruin his chances of getting another bank account and
other financial institutions would be more unrelenting and charge more for their services as they are
aware that michael has a bad financial record. that is why it is extremely important for michael to
follow the above instructions for him to manage his money and enjoy his time as an university

Essay on My Personal Financial Plan
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...show more content...
To accomplish my second goal I plan on putting a cap on my level of living expenses that
increases at a smaller multiple then my income each year. I want to give another half percent of my
income each year. I will budget out my salary for discretionary and non–discretionary spending and
stick to the budget by limiting use of credit cards and attempting to pay cash for most items I
purchase. This will help me control my cash outflow.
E. SWOT Analysis
Strengths
Most of my assets at this point are in cash so I have a lot of liquidity to pay off debt or other
expenses. I am a very goal oriented person so when I set goals to follow to financial success I take
them very seriously. My job at KPMG is a strong job with high future potential earnings as well as
learning opportunities. One of the best things about auditing is that I will be able to find a job
making a lot more after I work a few years at KPMG. My knowledge over investments and how to
invest is very good which will help me to continue to make money in the market. When looking at
risk management, my health is very good, which means I should hopefully not have very high
healthcare costs. KPMG provides a good insurance policy that covers any of my insurance needs
and reduces my risk. KPMG also has a very good medical reimbursement policy and a high quality
of other programs for their employees.
Weaknesses I do not have

Personal Finance Essay

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