A financial planning

 

 

You are going to buy a house! This is a big venture for anyone and there are many things to think about. How big a loan will I get approved for? Do I want to max that buying power? What are my bills the bank can see? What are my regular expenses the bank doesn’t see? What are other unexpected expenses that could crop up? So many things to think about! In this assignment you are going to explore and plan for your big purchase.
Here’s what your life is like:
Your take home pay is $85,000 per year. You are married with a spouse working part time, making $35,000 per year take home total (very part time jobs but kids, dogs, cats and goldfish take a lot of time and energy.) Luckily your spouses are also in this course so you will work on this assignment together! You have 2 school aged children, a dog, a cat and a goldfish. Now all you need is the white picket fence!
You have $20,000 total in savings, with no other liquid assets. On the down side, like most people you have a little debt. There are 2 credit cards with minimum payments of $135 and $220. Your student loan is $198 per month. You have two cars with payments of $375 and $400. There’s car insurance of $375 per month. One child takes dance lessons at $250 a month and the other plays baseball which is $25 a month. You and your spouses have a family gym membership which costs $99 a month. (You are trying to convince the dancer to join little league, but it’s not working so plan on that bill sticking around! Some of you may be groaning right now because this sounds a little too much like real life.) The bank knows about some of these bills, but they don’t know what you pay for insurance, they don’t know about the pets and they don’t know about the kids’ activities or the gym membership.
This is the first house you have purchased. The bank approves you for a $450,000 loan at 3.65% and you are thrilled! It’s time to shop!
What you will do:
• Working with your spouses, you and your spouses need to find a house you want to buy. Go for it! Find that $450,000 house! You can shop in any state you want; it does not need to be your current state of residence.
o Determine how much of the $20,000 you will use for the down payment. The bank requires a minimum of $5000 (generally it’s 10-20%, but you are a first time buyer and they are giving you a break.) However, the more you use, the more expensive a house you can buy. If you use the full $20,000 you can actually afford a $470,000 house.
o Calculate your monthly payment (the principal and interest). (This is the payment on a present value ordinary annuity.)
o Research what the property taxes are (this is usually available on home selling sites such as Zillow).
o Mortgage insurance is 1% of the mortgage amount. Taxes and mortgage are added to your payment.
o You will also need homeowner’s insurance.
o Adding your monthly payment, taxes and insurance, find your true monthly payment.
• After comparing your monthly income to your mortgage payment and bills, find how much spare money you will have each month. Don’t forget you still need to buy food, pay vet bills and doctor copays, buy clothes, pay for auto maintenance and home maintenance, pay utilities, etc.
• Determine if you want to buy the $450,000 house
• Just before buying, your spouses have lost their jobs but the bank doesn’t know and still offers the $450,000 loan. Based on just your income of $85,000 take home, figure out how much you want to spend on your house and find one at that price. Remember, the only bill that will change is the mortgage payment. Be sure to adjust taxes, mortgage insurance and assume your homeowner’s insurance has dropped to $95 per month.
• Find a house to buy which fits your budget!

 

 

 

 

 

 

 

Sample Solution

A financial plan is a comprehensive picture of your current finances, your financial goals and any strategies you have to set to achieve those goals. Decision to buy your dream home should be backed by sound financial planning rather being an emotional decision. Financial planning is very critical especially if you are buying a house on a loan. No one can buy property without financial stretch. On an average you need to cut household expenses by minimum 25%-49% after buying a house through home loan. It is not an easy task as you are used to specific lifestyle. It is critical to keep aside at least 6 months household expenses as a reserve to meet any future financial deficit. Reason, you and your family need some time to adjust to new lifestyle.

points, which is likewise why he would turn out to be a particularly fruitful ruler. When he came to control “Hadrian had seen a greater amount of the Roman domain than any previous sovereign had done at the hour of his promotion. He knew Spain, yet France and Germany, the Danube lands, Asia Minor, the Levant and Mesopotamia, and in this manner had an individual colleague with the royal patrimony that no other person in Rome could match.”

 

During Hadrian’s rule as sovereign, he fell in line with a tactical strategy that was disputable at that point, however roused by his childhood in the region of Italica. He accepted that the territories ought to be monitored by a privately enlisted military, while his Roman armies would remain in a solitary district for a really long time. The individual interest of commonplace occupants to safeguard themselves was his objective. The main Roman relatives that would help with the assurance of territories were important for the corps d’elite – the most elite – and would be sent exclusively to prepare the enlisted military-men. During his rule, in any case, Hadrian encountered a deficiency of two full armies. The diminishing of his military implied he would depend intensely on enlisted commonplace men as well as actual hindrances. One of which – his generally renowned – was situated in Britain: Hadrian’s Wall.

 

Hadrian’s appearance in Britain was a flash that lighted a fire of progress and improvement. During the subsequent 100 years, a lot of London was obliterated by shoot, and when the nation was reconstructed to an area of around 325 sections of land, it turned into Rome’s biggest northern region by far. Britons have generally consistently esteemed the field more than city life, as clear by their plain urban communities and appealing nurseries, and hence large numbers of different urban areas that were remade by the Romans wound up lessening in size, as opposed to growing. The occupants essentially needed to live in the excellence of nature, and moved out of their towns dramatically as the wide open was created. The most huge and enduring achievement during the time that Rome modified its English region was the plan and finishing of Hadrian’s Wall.

 

Hadrian predicted a cooperative relationship that he and the British region could share. It depended on his requirement for labor supply, which Britain had a lot to credit out. Consequently, Hadrian would invigorate the domain and safeguard it from the northern savages. His past mobilized security encounters ordinarily gave him a sweeping segment of land to keep record of; however since Britain was encircled by water in many headings his most memorable motivation was to construct a wall. Thinking back on his battle at the Rhine-Danube locale, that’s what hadrian knew whether a tactical power were to be compromised a fortification worked for retreat would just lead them too much. His essential brain persuaded him to think that portability was urgent in leftover strategically hostile, so an arrangement of fortresses spread out to build the area of control and correspondence was his optimal choice.

 

Hadrian’s Wall started close to the River Tyne and extended the entire way to the Solway. It wasn’t intended to be monitored at each point along its length, yet rather go about as a framework that would drive the traffic of his foes. “Since its course was plotted starting with one regular benefit then onto the next, the wall appears to have picked the most troublesome course across the English open country.” It moves to soak bluffs and sticks to hazardous edges. Foe powers wouldn’t just manage a man-made wall in their way, yet by and large they wound up confronted with normal designs that made navigating the wall considerably more troublesome; also the trench on the north side of the wall that was 27 feet wide and nine feet down. “The entryways permitted the section of troops for tasks toward the north and were places where non military personnel traffic among north and south could be controlled.” The wall was expected to be made of mortared brick work up until the River Irving, where limestone was presently not accessible locally. The wall progressed forward made of turf. Entryways were worked along the wall generally every one Roman Mile (1.5 km). Behind each entryway was a supported gatekeeper tower that would house the watch.

 

Another of the reasons Hadrian’s development of the wall is a particularly surprising accomplishment is on the grounds that the whole undertaking was finished manually. Roman legionaries would invest energy finishing a pre-indicated length of the wall, and afterward permit the following army to go along

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