Personal Financial Plan
In creating a personal financial plan of a person who is married and with two children first you should assess the financial position of the individual. Prepare a net worth statement which is the difference between all the valuable things and all the debts or in short, it is the person's assets minus his liabilities. For a married individual this may include their house and lot or vehicle or even businesses they own, and their liabilities could include loans they have made or insurances they are still paying for. Second thing to do is to calculate the debt to income ratio of the family. Is the income of the husband and wife enough to accommodate all their debts? Next step is preparing a cash flow analysis or in other words the family's budget that will include the couple's income and the expenses of the whole family per month. An important factor also is managing your risks aka having insurances like health insurance for the family, homeowners insurance or life insurances. Check also if they have the lowest possible interest rates on loans, mortgage or credit cards. A married individual should also determine their future financial goal which is time bound and measurable: when to pay debt; establish educational funds for the children; or payoff the mortgage. Then, the individual should design a plan to reach his established goals and take that plan into action. Keep tract of income and debts, make sure to be in the budget or have enough emergency fund for uncontrolled events. Lastly, monitor the set plan. Keep tract of the progress in reaching the financial goals monthly or quarterly, update the net worth statement at the same time and be ready to make adjustments if the individual deviates from the plan.
Bibliography
http://financialplan.about.com/od/personalfinancebasics/ss/FinancialPlan_5.htm
Personal Financial Situation The management of a Fortune 500 organization utilizes financial statements to craft corporate strategy on a quarter to quarter and year over year basis. These statements: balance sheet, income statement, and statement of cash flows contain crucial financial information which explicates how successful a company has been and its potential future prospects. These same three statements can be used by me as I face financial scenarios which require
Conclusion Few students are prepared for the relatively easy availability of credit after they enter college. In many cases, they may have had no experience managing their own credit. Many are encountering their first period of significant debt accrual with student loans, whether directly from the government or through private lending institutions. A student should regard him/herself as an asset, and make some financial assumptions about how much he/she will earn
Personal Development Plan Over the course of this semester I have spent a great deal of time assessing my own personal strengths and weaknesses as they relate to my future career choices and my ability to work with others, both personally and professionally. I have considered the competencies we have reviewed, and I chose a combination of aspects that relate to my own personal development and my way of relating to
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
Retirement Plan Financial Plan The client is a married male in his mid-twenties. It is projected that the client will graduate from college within the next year or so and immediately enter the workforce. The client's degree is in engineering and he is expected to land a well-paying job in a relatively short time. He and his spouse are currently childless but plan on having at least two children. The couple lives
Business Plan Business Financial Plan for Sweet Tooth Treats Baking has always been a major part of my family life, and for generations there has been infamous cookie recipes past down from one cook to the next. Every holiday season, my cookies are notorious for being the best any gift receivers have ever had. Finally, I believe it is time to make my baking hobby and actual money making enterprise. I know
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now