lesson1gbs132dj

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Pima Community College *

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151

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Finance

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Jan 9, 2024

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docx

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GBS132 Lesson 1 Exercise Template Name: Denise Johnson Having a clear financial plan is key in achieving your financial goals. This exercise is designed to help you gain clarity and insight into your financial priorities and objectives. Follow the instructions below to complete the assignment. Instructions: 1. Answer all questions in the template to complete the assignment. 2. You must include at least one citation and reference from the textbook. 3. Remember to cite all sources using APA format as described in Lesson 0. 4. For Part B, assume that the cost estimates are represented in today’s dollars. A. Define the personal financial process, what it encompasses, and why it is important to yourfinancial life. Your answer should include a minimum of 3 well-written paragraphs. The personal financial process is a six-phase cycle, to manage financial resources and obligations. It includes different activities, including budgeting, saving, investing, and managing debt. This process begins with identifying financial goals, followed by the development of a strategic plan to achieve these objectives. The plan typically includes elements such as income generation, expense management, asset allocation, risk management, and retirement planning. The personal financial process is not a one-time event but an ongoing cycle of assessment, planning, execution, and review. It is crucial to your financial life because it provides a roadmap for achieving financial stability and personal financial goals, such as buying a car, or a home, or saving for retirement. By effectively managing your finances, you can ensure that you have sufficient funds to meet your current needs and future aspirations. (Billingsley et al., 2020) The sooner you implement financial planning the more you can gain, it can help you build wealth over time, protect against financial hardship and uncertainties, and improve your overall quality of life. Understanding and implementing the personal financial process is an essential step towards achieving your financial goals and securing your financial future. Page | 1
GBS132 Lesson 1 Exercise Template B. In the table below, set at least three financial goals for yourself for the short, intermediate, and long-term. In the priority column, rank each goal from 1 to 3, with 1 being the most important. Assume all cost estimates are represented in today’s dollars. Personal Financial Goals Name(s)Denise Date November 07, 2023 Short-Term Goals (1 year or less) Goal Priority Target Date Cost Estimate Emergency Fund 2 11/01/2024 $8,000 Pay Tuition 1 04/01/2024 $2,500 Buy Laptop 3 12/31/2023 $400 Intermediate-Term Goals (2 to 5 years) Goal Priority Target Date Cost Estimate Buy a Car 1 06/01/2025 $10,000 Go on a cruise 3 01/20/2026 $8,000 Invest in AtLastAuto 2 12/01/2026 $10,000 Long-Term Goals (6+ years) Goal Priority Target Date Cost Estimate Buy an RV 1 11/03/2043 $75,000 Retirement savings 2 11/01/2043 $100,000 Buy a House 3 12/31/2039 $200,000 Page | 2
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