Question

Your good friends, Pistol Pete and his wife Petunia found out that you took this class. They now know you are an expert on Personal Finance and would like your advice. They invite you over for dinner to talk about their situation. Pete has been offered an amazing career opportunity. He is considering leaving his job as the Aggie mascot and moving to Miami, Florida to become the next “Billy the Marlin,” a Major League Baseball Team Mascot. Petunia is concerned that even though Pete will be making a much bigger salary, they might not be able to afford the move. Their household consists of the two of them plus their kids: Polly, age 15, Parker, age 10 and Penelope, age 5. What advice would you give the family on figuring out if this is a good move, financially speaking?

What do you believe is the most important concept we discussed in this class and how will you use the knowledge you’ve obtained in order to improve your financial future? (No wrong answers!)

Answer 1

My advice on this would be that Pete should be making this move, because right now I don't think they've any big financial expense in their way in the coming 3-4 years. I mean, they might not be able to afford the move, and they might have to take loan or something, but considering the eldest kid is of the age - 15, we can say that age of Pete is 40-45. He has still some 15 years of his working life left and if he's getting a good hike he should definitely grab the opportunity. So, financially, this should be a good move because this supports growth in his life at the moment though it might increase some burden but considering he still has 15 years, he should be able to clear that burden easily.

The most important lesson learnt during Personal Finance is to plan your expenses wisely in accordance with your earnings. Basically, one should be able to plan his inflows and outflows for better planning and post that, one could live his life accordingly. Also, one should always have a habit of saving some bucks, let your money earn for you.