Budget for a financial plan
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.
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.
- What are your financial goals?
- What are the steps you will take to reach your goals?
- What challenges have you faced in creating your financial plan?
- What advice would you give to someone who is trying to create a financial plan?