Personal Finance: Making Good Decisions
Financial decisions can have lifelong implications. Before taking this class, although I had a basic understanding of how financial problems could be calculated as equations, I did not necessarily know how to make optimal decisions in the real world. Making good financial decisions requires making an intelligent risk versus reward analysis. All decisions require an economic sacrifice or have an opportunity cost. The money diverted to a college education, for example, could be used for investment, and the time invested in college could be diverted to full-time work. Not all economic actors will have the same fears and hopes and each person may have different comfort levels with economic uncertainty, but all decisions should be made in an intelligent way.
Example One: Renting or Buying a Home
The dream of home ownership has long been lauded as the highest goal of every American. But many people have begun to question that dream in recent years. Regardless, it is important to view that dream realistically, in terms of one’s real financial situation and goals, versus simply accept what people have said in the past. Commonsense wisdom about economics is not always true. Taking this class gave me the tools to more critically calculate my financial position in regards to my housing situation in the future. For example, if remaining in an area more than 6 years, it is generally cheaper to own a home rather than rent, based upon weighing the costs of monthly living expenses versus property taxes (“Rent versus Buy,” 2018). In general, the longer someone lives in a home, the greater the financial benefits of remaining in the home. But that is assuming a buyer can get a fixed rate mortgage, with a stable and predictable monthly payment, as well as assumes that property taxes do not increase astronomically. And that is also assuming a relatively stable position for a new college graduate, which may be unlikely. There is great flexibility in renting,...
16. Help Rebecca and Jay apply four steps of the smart buying process to decide whether to replace Vehicle #2. What sources of consumer information might be useful to them? According to Auto Channel the four steps are: Determine your practical needs for a new vehicle, determine your budget and stick to it, determine your emotional needs, which car or truck really makes you happy when you drive it, and
DECISIONS MGT/230 Management Theory Practice Decision-Making Process Paper Resource: Management: Leading & Collaborating a Competitive World Identify a time life make a personal professional decision buying a home, changing jobs, enrolling school, relocating state region. Decision-making process in real life: Buying a new car Buying a car is a serious decision. It is an expensive purchase -- for many people a car is the most expensive item they own, after their house. When
In addition, liability insurance covers damage done to other's property, should the insured become legally liable for the damages. Boiler insurance was originally created to cover loss due to insureds owning a pressure boiler. However, today, boiler insurance is often more aptly renamed equipment insurance. Equipment insurance will provide coverage for mechanical breakdowns of equipment, including the cost of repairing or replacing the equipment. The equipment can include: air conditioners, hot
Personal Model of Ethical Leadership Leadership has been defined as the "procedure of social influence where a person is able to enlist the aid and support of others in the achievement of a common task" (Jam, 2012). Leadership is something that remains as one of the most appropriate features of the organizational context. A leader is an individual who influences a group of people in the direction of a specific result.
Finally, anybody hoping to conserve money in a recession must avoid spontaneous expenses, whether at the grocery store or the mall. Purchases should always reflect what one actually needs and never spontaneous impulses to buy anything for which the consumer did not already have a conscious need in advance. Purchasing milk at the grocery store after forgetting to list it is one thing; purchasing a new pair of shoes at
personal cash management policies and practices. The paper starts with by stating the methodology through which the content was collected for the relevant literature in the paper. The paper then presents a clear definition of what cash management is and presents an overview of some of the most utilized personal cash management practices. The literature review also presents numerous internal cash management policies and practices that can prove to
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