Develop your own Financial Plan by covering the following Steps: 1. Establish your financial goals. What...

Develop your own Financial Plan by covering the following Steps:

1. Establish your financial goals.

What are your short-term financial goals?
What are your intermediate-term financial goals?
What are your long-term financial goals?

2. Consider your current financial position.

How much money do you have in savings?
What is the value of your investments?
What is your net worth?

3. Identify and evaluate alternative plans that could achieve your goals.

How can you obtain the necessary funds to achieve your financial goals?
Will you need to reduce your spending to save more money each month?
Will you need to make investments that generate a higher rate of return?

4. Select and implement the best plan for achieving your goals.

What are the advantages and disadvantages of each alternative plan that could be used to achieve your goals?

Solutions

Expert Solution

1. Financial Goals

As i am 22 right now and still studying, my short term goal is to secure a permanent job in some stable company with a steady income. With this I can finance my expenses and keep my family happy and satisfied.
Intermediate term goals would be to grow in the company and be at a very responsible position with income enough for me and my family. I may be married to someone so I need to satisfy every needs. So for that need to earn that much.
Long Term Financial Goals would be to earn as much that my family and my kids should be more than happy. I have my retirement plans intact. I should have enough to travel the world around many times and with my kids and family.

2. Current Financial Position

In savings, I have around 500K
My investments are around 200K
My net worth will be around 800K

3. Plans

I need to have steady job and growing income. I should grow each day with raise in my salaries.
I need not stop spending but need to spend smartly. Only spend to whats necessary
Investments should me made keeping in mind the risk involved. The returns should obviously be there, but risk is more important

4. Advantages and Disadvantages

There is always some pros and cons in whatever you do. You just need to take proper decisions and move ahead.

jeff jeffy answered 1 year ago

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