Personal Financial Planning Essay

Daily economic activities have an important influence on personal financial planning. In our society, the forces of supply and demand play an important role in setting prices. Economics is the study of how wealth is created and distributed. By doing my research, I found that each economic situation would affect me at a personal level.

Financial planning is the task of determining all the incomes and expenditures of the company in order to achieve all the set goals and objectives of the company. The company immediately make the financial plan after the vision and objectives of the company are formed. The financial planning includes activities, human and financial resources, materials and equipment necessary in order to achieve the goal and it also includes the time-frame need to reach the goal.

Every person want to handle his or her finance, but they need to choose an organized process which is call personal financial planning. I am 54 years old, living the single life. I live in a household with one other adult, and I am a full-time student and a part-time employee. Based on my current situation (Older, Single, No Dependent Children), therefore, my financial activities should include making arrangement for long-term health care coverage, develop an estate plan, buy a right insurance plan, and develop an investment program for retirement. My financial plan goals are Short-term goals, Intermediate goals, and long-term goals.

It provides hints about the levers that managers must pull to achieve growth above the sustainable rate.

1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points)

Michael is a 18 year old boy who has recently completed his hsc studies and decided to stay at home and have a part time job for the next 5 years, he has $35 000 combining his total finances and he will earn $120 a week and has to pay $60 a week to his parents. he also aspires to buy a small car while he is at university.

For many people including myself, one of the best decisions that we can do to help us make the most of every penny we make to help us fulfill our goals and objectives in life is to create a personal budget. Until we know exactly where our money is coming from and where exactly our money is going and being spent, we cannot truly take control of our finances and financial goals. The most important part of the process is to gather and collect information obviously with some clear goals already in mind.

One of the most important steps of the financial planning process is mapping out a long term strategy that will help you achieve your goals. We are therefore pleased to present our advice below, which summarises your situation and details the recommended strategies we believe will be most suitable for you.

Personal finance is principle of finance to the monetary decisions of an individual (Boone et.al, 2014). Which mean that, the ways in which individual manage, spend the money for future life events. For example, individual an allocated the money to invest in long term planning. Long term planning is the process of aligning financial capacity with long term service objective. In addition, long term planning works best as part of an overall strategic plan.

The following consist of a constructed financial plan for Tyler Sisson. He is a single 22 year old and is completing his fourth year in the business program at University of New Brunswick. He has an apartment on Montgomery street, were he walks to school everyday, and plans to purchase a vehicle after university. He has been working a part-time job at Canadian Tire during the school year. Tyler’s main focus at university is marketing and is looking forward to commencing a career in that field.

The role of a financial planner is to help groups or individuals with the use of their investments, income, taxes, or savings. This includes helping people with their immediate or long term financial goals such as a small investment or retirement. This job comes with immense responsibility because a financial planner is entrusted with another person’s money, and just one wrong investment could lead to the loss of a client.

Personal finance is the principles implementation of finance to an individual’s or personal’s monetary decisions. It involved the way of an individual or personal to gain, keep, spend and budget monetary resources over time, and taking into account of different kind of financial risk and future life events. Personal’s wealth picture will determined by combining the personal finance knowledge, education, financial decision, financial plan, goals and financial desire. The appropriate financial management and improvement will help personal financer to see its positive impact in the next several of decades.

A personal financial plan is essentially important for any person and their loved ones to minimize future hardships and difficult financial situations. Short and long-term financial freedom and stability is something an individual wants to have through to the end of his or her life. Financially planning for one’s retirement years is vital so a person does not sustain major unhappiness or unnecessary pain in what is supposed to be the reward for working so hard in their younger years.

There are many different definitions for the profession of a financial planner. The services that financial planners offer usually vary widely. Some financial planners look at every aspect of a client’s life and show the client how he or she can spend and save money more wisely. Other financial planners show clients where and how to invest money (“Financial planners,” 2008). Four of the major specialty areas of financial planners include major life changes, personal finances, investments, and business finances (“Financial planning association,” 2012). Because there are so many types of financial planners, the best definition would be anyone who provides financial advice, investment management, or brokerage deals in exchange for money (“How

It is the wish and hope of every person that when they age they will have a sustainable source of income to live on until they pass. In view of this objective of every average working person, the process of managing a person's income becomes a crucial practice. The aspect that the source of income may be regular or irregular, consistent or inconsistent makes it challenging to determine and decide on a particulate portfolio for investment. Thus, the business world, after realizing the need for a savings culture, introduced business banks and bank accounts that facilitate the accumulation of money for the future use. Money management is a subject of interest in people nearing retirement, as well as, those beginning their savings (Newcombe 2008 p. 31).