Budget for a financial plan

at
Categories
Tags

SCENARIO: Imagine that you are in a position where you need to move – this could be because of a change in job, a need to modify your living arrangements, or something else. In addition to searching for different housing, you want to begin saving for a specific financial goal.
You will use the Assignment Template (an Excel file) to create a budget that satisfies the scenario. You’ll also answer reflection questions related to your goals.
This work has two parts. In part 1, you will create a financial plan based on the scenario described above. You’ll use your productivity skills to organize your plan, and you’ll use your problem solving skills to determine a reasonable rate of savings to reach your goals. Finally, you’ll apply your technology skills to ensure that your budget is balanced, and expenditures (like housing) don’t exceed your employment income.
In part 2, you will answer reflection questions about the decisions you made and the skills you leveraged while building your plan.
For this , you will:

Create a budget for a financial plan using Microsoft Excel, ensuring that the information is organized, accurate, and complete.
Identify a personal savings goal and a time frame for reaching it.
Explain how your choice of housing will help you achieve your personal savings goal.
Align your expenditures to support your goal.
Reflect on how creating a step-by-step and organized approach to the assignment helps you adjust the financial priorities in your plan.

Sample Solution

Scenario:

I am currently living in a one-bedroom apartment in a major city. I have a good job, but my salary is not enough to save for a down payment on a house. I am also starting to feel cramped in my apartment, and I would like to move to a larger place. However, I know that moving will be expensive, and I need to make sure that I have a plan in place to save for my move and my future financial goals.

Financial Plan:

I have created a financial plan that will help me to save for my move and my future financial goals. The plan includes the following components:

  • Budget: I have created a budget that tracks my income and expenses. This will help me to see where my money is going and to make sure that I am not overspending.
  • Savings goals: I have set specific savings goals for my move and my future financial goals. This will help me to stay motivated and to track my progress.
  • Plan for moving expenses: I have estimated the cost of moving and have included this in my budget. This will help me to be prepared for the unexpected expenses that may come up when I move.
  • Investment plan: I have started an investment account and am contributing a portion of my income to it each month. This will help me to reach my long-term financial goals.

Problem Solving:

One of the challenges that I faced in creating my financial plan was determining a reasonable rate of savings to reach my goals. I decided to use the 50/30/20 rule as a starting point. This rule states that you should allocate 50% of your income to needs, 30% to wants, and 20% to savings and investments. However, I knew that I would need to save more than 20% of my income in order to reach my goals. I decided to increase my savings rate to 30%. This will allow me to save for my move and my future financial goals in a reasonable amount of time.

Technology:

I used the Assignment Template (an Excel file) to create my budget. This tool was helpful in tracking my income and expenses and in setting savings goals. I also used the internet to research different investment options. This helped me to choose an investment account that was right for me.

Reflection Questions:

  • What are your financial goals?

My financial goals are to save for a down payment on a house and to retire comfortably. I also want to be able to travel and to enjoy my life.

  • What are the steps you will take to reach your goals?

I will reach my goals by saving 30% of my income each month. I will also invest my money in a diversified portfolio. I will continue to learn about personal finance and investing so that I can make the best decisions for my money.

  • What challenges have you faced in creating your financial plan?

One of the challenges that I faced in creating my financial plan was determining a reasonable rate of savings to reach my goals. I also had to make some sacrifices in order to increase my savings rate. However, I am confident that my plan will help me to reach my goals in a reasonable amount of time.

  • What advice would you give to someone who is trying to create a financial plan?

I would advise someone who is trying to create a financial plan to start by tracking their income and expenses. This will help them to see where their money is going and to make sure that they are not overspending. I would also advise them to set specific savings goals and to create a plan to reach those goals. Finally, I would advise them to be patient and to remember that it takes time to reach financial goals.

I am confident that my financial plan will help me to reach my goals. I am excited to start saving for my move and for my future financial goals. I am also grateful for the opportunity to learn more about personal finance and investing.

This question has been answered.

Get Answer