Description
Section 1: Your Top 3 Reasons to Plan financially.
Choose your top 3 of Edelman's "The 12 Reasons to Plan" and describe why these three are most important to you. Additionally, explain how you will incorporate these three reasons into your personal financial plan. Incorporate your knowledge of investments and compounding as well as some of Schor's principles for avoiding consumerism and unnecessary purchases.
500 word minimum
Section 2: Your Top 3 Obstacles.
What do you see as your 3 main obstacles for building wealth? These are purely personal, although you can refer to Edelman's obstacles for ideas. The goal here is your personal introspection as to your likely future hurdles to overcome. Following up on those obstacles, address them directly in your financial plan, meaning how will you mitigate, or lessen, the potential impact of these obstacles.
500 word minimum
Section 3: What if?
Choose one of these three financial difficulties and, using your imagination and creativity, write a narrative on how you would cope with your chosen difficulty.
Loss of a Spouse/Divorce: You must construct and describe a realistic plan of action for the financial challenges currently confronting a parent of two, ages 5 and 3, in his/her early 30’s trying to regain or maintain financial independence. You are not responsible for solving any financial problems, just for identifying the potential problems and offering solutions for coping with these problems both in the short run and long run.
Natural Disaster: You must construct and describe a realistic solution to the financial problems currently confronting your family of three, you, your partner and a 9 year old child, struggling to reconstruct your life after losing everything in a devastating natural disaster such as a flood or wildfire. You are not responsible for solving any financial problems, just for identifying the potential problems and offering solutions for coping with these problems both in the short run and long run.
Caring for a Family Member Unexpectedly: You must construct and describe a realistic and sensible solution to the problems currently confronting your family of three, you, your partner and a 9 year old child. You are the sole surviving relatives of a family member who is unexpectedly in need of care, both financial and residential, for the next five years. You are not responsible for solving any financial problems, just for identifying the potential problems and offering solutions for coping with these problems both in the short run and long run.
- 750 word minimum
- Rubric
- Financial Literacy Project
- Financial Literacy Project
Explanation & Answer
Attached.
Running head: FINANCIAL PLAN
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Financial Plan
Name
Institutional Affiliation
FINANCIAL PLAN
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Financial Plan
Top Three Reasons to Plan Financially
To plan financially is essential and can help individuals to determine the short and long
term financial goals and can be vital in creating a balanced plan to meet the set goals. With
Edelman's 12 reasons to plan financially, the chosen top three reasons to plan financially are
such as financial understanding, savings, and family security (Edelman, 2005). The plan is vital
for the three reasons above, and it can help me to work for more and spend less. The three
reasons make up my most persuasive reasons to plan financially. The three have different
importance to my family and me at large. A financial plan is essential from its definition and
helps individuals in making financial decisions that can be essential in the long term.
To begin with is the financial understanding. This is one of the best reasons as to why it is
essential to plan financially. Better business understanding is achieved when there are financial
goals that are set by an individual; it affects decisions understood and the reviewed results. It
provides me with a new approach to my budget and can improve control over my financial
lifestyle. To understand financially, it means that decisions made on the plan can be based on the
available amount of money I have at hand. Besides, it can be essential in managing the debt,
calculate the interests accurately, and understand the value of money at hand. Therefore, in my
plan I will incorporate the financial understanding because it will help to deal with the arise of
financial problems.
Secondly, to plan financially can help to save. Savings can be done through bank
accounts or carrying out some savings. It is not easy for an individual to save when they do not
have a financial plan; without a plan, you can squander the little amount without using the
amount appropriately. With proper savings, the amount can be utilized in times of emergency or
FINANCIAL PLAN
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for educational purposes or other activities. Therefore, planning financially ...
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