You are going to write a personal financial plan. To prepare, answer the questions below.
1. What is your financial goal? Why did you choose this goal?
2. What steps do you plan to take to help you accomplish your goal?
3. What do you hope will happen in your financial future?
WRITING ASSIGNMENT
Start writing a personal financial plan.
Use your plan and the model to help you.
You will complete your personal financial plan
in the Student Lesson.
Remember:
● State your financial goal and explain why you
want to accomplish it.
● Explain what steps you plan to take to
accomplish your goal.
● Explain what you hope will happen in your
financial future.
Personal Financial Plan
1. Financial Goal: My financial goal is to save $10,000 in the next two years. I chose this goal because I want to have a solid emergency fund and also be able to afford a down payment for a new car. Saving $10,000 would give me a sense of financial security and allow me to pursue my future goals without worrying about unexpected expenses.
2. Steps to accomplish the goal:
a. Create a budget: I will carefully analyze my income and expenses to create a realistic budget. This will help me track my spending and identify areas where I can cut back to save more.
b. Minimize unnecessary expenses: I will prioritize my spending and cut back on non-essential items such as dining out or entertainment. This will allow me to allocate more money towards savings.
c. Increase income: I will explore opportunities to increase my income, such as taking on additional freelance work or pursuing a part-time job. This extra income will be directly funneled into my savings account.
d. Automate savings: To ensure regular saving, I will set up an automatic transfer to deposit a fixed amount of money into my savings account each month. This will eliminate the temptation to spend the money instead.
e. Research investment options: Once I have reached my initial savings goal, I will research investment options to make my money work for me and earn additional income over time.
3. Financial future hopes:
a. Debt-free: I hope to eliminate all my debts, such as credit card balances and student loans. Being debt-free will provide me with a sense of financial freedom and allow me to focus on building wealth.
b. Retirement planning: I hope to start planning for retirement early on. By setting aside a portion of my income in retirement accounts, such as an IRA or 401(k), I hope to ensure a comfortable and secure retirement.
c. Financial independence: I aspire to be financially independent, where I have enough passive income from investments or business ventures to support my lifestyle without relying on a traditional job.
d. Giving back: As my financial situation improves, I hope to have the ability to give back to society and support charitable causes that are important to me.
In conclusion, my financial plan is to save $10,000 in the next two years. I will achieve this goal by creating a budget, minimizing expenses, increasing my income, automating savings, and exploring investment opportunities. In my financial future, I hope to be debt-free, plan for retirement, achieve financial independence, and give back to society.