FIN250 Worksheet_02

doc

School

Southern New Hampshire University *

*We aren’t endorsed by this school

Course

250

Subject

Finance

Date

Feb 20, 2024

Type

doc

Pages

Uploaded by melarias142

WORKSHEET 2—Financial Objectives Worksheet The generic objectives provided are typical for people of all ages and are geared to assist you with your goal setting. Please rank the objectives on the following scale. 0 – Not applicable at this time 3 – Important 1 – Not important 4 – Very important 2 – Somewhat important 5 – Crucial Financial/Personal Objectives 0 1 2 3 4 5 Becoming more financially knowlegdeable X Improving record keeping methods X Finding a life partner X Starting a family X Aquiring additional home furnishings X Reducing revolving debt X Increasing savings X Reducing taxes X Paying off student loans X Evaluating insurance needs X Increasing insurance protection X Advancing in current career X Changing careers X Increasing investment diversification X Increasing investment return X Starting a small business X Planning for children’s education costs X Saving to return to college X Purchasing a vehicle X Saving for the down payment on a home X Purchasing a home X Caring for parents X Investing an inheritance X Saving for retirement X Retiring early X Traveling extensively in retirement X Giving to charity X Transferring estate assets X Other: Pay off home faster X Pay off current car X

Short-Term Financial Goals Southern New Hampshire University November 12, 2023

Short-Term Financial Goals Establishing a financial plan has allowed me to reflect on where my money has gone, where I should invest and what changes I need to make for my money to get the most use. On worksheet one we focus on establishing personal financial goals as early as a year out and as far out as ten years or later. Worksheet two requires us to rate financial objectives based on importance based on health, family and future needs for our retirements. Worksheet four and five allows us to break down our income and net worth by using a balance sheet and an income sheet. All four worksheets provided a deeper understanding of where my money goes throughout the year. During this observation I struggled to get accurate numbers due to the numerous changes this year. This year alone I had redeployed to the US after being overseas for nearly a year, I moved from Kansas to Washington, and I recently purchased my first home. All three events have thrown my income for a loop, I went from renting a duplex that cost me no more than $750 with utilities to a mortgage and utilities that are costing me a little over $3,000. My monthly income also changed from redeploying and now it’s changing because I’m living in Washington, so the Army needs to change my housing allowance. Due to the inaccuracy of my pay, I will need to wait until my finance office updates my base pay and housing allowance to have exact numbers Worksheet one allowed me to recognize that I need to focus on long term goals, goals between one and ten years. Rather than aiming to “save money,” state the purpose of your saving efforts, such as buying a car, and determine exactly how much you want saved by what time (Keown, 2019, p. 7). Though I do not have children, nor do I see that in my future plans, I do have goals to save up enough money to do major home improvements. Fortunately, in doing so, I will not only accomplish a goal, but it would then raise the value of my home with those

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

improvements being made. One thing that concerns me is the amount of money I am estimating to save and need to accomplish my desired goals based on priority. Like work sheet one, worksheet two gave me a further breakdown on specific financial objectives, this sheet helped me recognize what I desire to achieve on a zero to five scale. The most alarming message I received from this worksheet was that all my fours and fives were related to debt. Once I began to focus on my debt, I paid closer attention to my income statement. Although my numbers are not exact on worksheet five, they are rough estimates on what seems to be the most accurate when it comes to my finances. My total available savings and investments were at $19,114, this year alone I saved $11,430 from that balance, but it made me wonder where the rest of that money went. Keown (2019) says, their cash mystery spending averages $59 per week, or $3,078 per year, with more than half of them saying their cash tends to disappear most often during a night out (p. 150). Even though he was referring to American men, I could agree that, that statement applies to me. There have been many outings throughout the year that I have yet to look back at and see how much money I spent which eventually becomes a huge worry. Lastly, worksheet four brought me complete shock on what my estimated net worth is currently sitting at. After noticing my current financial challenges, such as my debt and the required savings I need to accomplish my intermediate and long-term goals, the balance sheet brought me awareness of potential opportunities. Since I saved over half of my available saving, one plan I have set for myself is to pay off my debt within the next year and invest my money. Given that the military provides the opportunity to opt into a retirement plan and access different IRA’s, I will be opting in and investing a percentage of my biweekly pay. Now that I am aware

of my personal finances, I will begin to focus on where my money goes and create monthly income statements.

References Keown, A. J. (2019). Personal finance: Turning money into wealth (8th ed.). Pearson

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version