Becoming an adult and entering the workforce are big steps in a person’s life. However, financing the wants and needs of that life, including investments, family, house, and finally, retirement is also monumental steps to overcome. Through the process of financial planning, an individual will have a better advantage of fulfilling that economic satisfaction to attain all the desires and necessities that life offers and requires (Kapoor, Dlabay, Hughes, 2014). The financial planning process requires one to assess their current financial situation, develop goals, develop alternative courses of action, evaluate alternatives, create and implement a financial plan, and review as well as revise the plan (Kapoor et al., 2014). Although planning is essential, one cannot overlook the risks and crisis that are often associated with all aspects of human activities as well as the resulting factors of those risks (Jiraskova, 2017). Often personal risks …show more content…
Guidelines to consider are (1) avoiding quick decisions, regardless of the personal desire for an item or the rush from a salesperson; (2) creating a list of pros and cons for a purchase that includes the potential amount of money that could be lost if the negative happens in this financial purchase; (3) evaluate the benefit that the seller is receiving as well as the positive side of the purchase for oneself; (4) ask the seller questions and gather data on the item being purchased; and finally, (5) discuss the purchase or decision with a trusted individual and be open to their feedback (Roth, 2016). Because the economy, interest rates, and costs change rapidly, individuals should make a habit of reassessing their financial plans and goals on a periodic basis to assure that changes are caught and adjusted in a timely manner (Kapoor et al.,
Thévenaz, C, and S.L Resodihardjo. "All the Best Laid Plans…conditions Impeding Proper Emergency Response." International Journal of Production Economics, 126.1 (2010): 7-21.
I chose to do my book review on Brad and Ted Klontz’s “Mind Over Money: Overcoming the Money Disorders That Threaten Our Financial Health” because I have observed, and participated in, bad financial decisions that have greatly impacted my family for decades. I’ve taken many personal steps to attempt to break the cycle of destruction that ended my parents’ marriage, and to raise my children in a debt free environment. Unfortunately, it has not been an easy task. I have read many financial self help books and attended seminars on the subject. This book caught my attention when it said that simply learning how to budget and pay off debt isn’t enough, that one has to first understand our psychological relationship to money, and then move beyond the financial constraints we put on upon ourselves. For years I had struggled with debt and money management. I had always assumed it was my lack of education that held me from moving forward. Reading this book has been a welcome eye-opener.
Summary: The book “Complete Guide to Money” is written by a financial planning expert and a radio talk show Host Dave Ramsey. Mr. Ramsey also conducts “Financial Piece University”, where he teaches people how to be smart with their money. The book that I read is actually a textbook for one of the courses of the program that Dave teaches. The author introduces himself in the book as someone who was making good money at one point of his life and later lost it all because he made some foolish choices. A valuable life lesson that he learned that in order for “The money to work for you, you need to know how the money works”. Dave Ramsey received his degree in Personal Finances and got his life, as well as finances back in order to be able to teach others about managing money. The “Complete Guide to Money” discusses the Baby Steps of Savings, the importance of having a plan and sticking with it. It prepares the reader to manage finances in a family setting or as a single individual. Going over the income, expenses and the importance of the budget, makes it easy for the reader to understand how to create a budget (the actual template at the end of the book is also very valuable). The material also covers how to get rid of debt, the meaning of credit scores and functionality of the credit reports. It goes on to discuss different types of insurances, how to negotiate a good deal, and saving for the future. Each chapter has real life examples and quotes from the actual clients of the Financial Peace University, as well as their stories about how they got their finances in order by following the simple ...
The crisis team must keep one thing in mind, above all, when anticipating and planning for crises: crises are fraught with risks, which present themselves immediately, and opportunities, which give small clues and only manifest themselves over time.
Various researches can determine possible reasons as to why consumers have quite a lot of trouble making financial decisions that can be the most beneficial later in life. In the context of savings for retirement, conclusions from a test reveal that self-regulatory state, possible future orientation and more and better financial knowledge can and most likely will influence a consumers intentions for retirement investments, for example, setting up a 401K in the USA. Other studies suggest consumers who show higher amounts of future orientation are usually more likely to start up a retirement plan. Studies also show that financial knowledge and financial orientation toward ones future can help to influence the chances of one participating in a 401K plan.
Retirement is a big social factor in the lives of the elder and one is able to retire as early as 62 years old, but retirement is not obligated . Retirement affects these individuals physically and mentally and every situation differs depending on attitude toward and reason for retiring. Daniel B. Kaplan and Barbara J. Berkman (2017) claim that one third of retirees have difficulty adjusting to certain aspects of retirement, like reduced income and altered social role and entitlements. People choose to retire for many different reasons, some because of health problems, job loss, or just the simply want to retire. Looking into retirement planning services and retirement preparation ahead of time within employers and community agencies will help relief plenty of stress when this stage in life
What do you understand by the phrase “stakeholder analysis”? Attempt a stakeholder analysis of an organisation that you are closely associated with.
Our reading this week teaches us that there are three steps that should be performed prior to making your purchase. Siegel and Yachts cover that you must first identify the product, this can be done by comparing attributes between the items that you are looking at. These attributes can vary on importance depending on the product itself. If it is something simple as purchasing toilet paper, the typical key attribute is with how soft it is, moving to something more complex as a television, you will have a great number of features such as sound quality, audio, or picture clarity to name a few. The more attributes the Item have, the possible harder it is to select. We later learn the next step is to identify the market, in this step Siegel and Yachts explain that you will compare price, delivery (return), and convenience. With me, online shopping is becoming more and more important, I often purchase items through Amazon.com due to having a membership. When I purchased a new TV, once I decided which model, this step became key on how I purchased it, my first action was to look on Amazon, which they had it with free shipping. I was able to find the TV cheaper at a different location, but the shipping the other site had caused it over all to be more. So with Amazon’s price match policy and free shipping, I went with them. The last step that is covered is identify the financing, with this, you are to figure out how you will pay for it, typically will you have the cash up front or will you need to put it up on credit.
Consumers make choices every day that affect the economy we live in, and in return these choices impact one’s personal finances. Take for instance, buying clothing at retail establishment that is trending,
Retirement is one of the most important crossroads we face in life. It involves a fundamental change in lifestyle, one that calls for a totally new outlook on how we approach each day. All our lives we have been conditioned to think in terms of saving for our retirement years. Society has created this mystique about this time in our lives when we magically transform into different people with different lives when really we are the same people with different day to day lives. According to Medina, (2012) planning for retirement isn’t a "walk in the park" because for many people, debts are high while income is low.
Curatola, Trewin (2010). Retirement Planning in Light of Life Expectancy and Gender Issues, Journal of Financial Service Professionals, 64(5), 70-80.
Developing a thorough financial plan is a process that comprises a comprehensive analysis of a particular individual’s financial position and their long-term commitment to apply and observe the set financial plan through one’s life. The plan includes but not limited to, how an individual spends, saves monies and invests his or her financial assets. It encompasses knowing how to budget, manage cash and taxes, borrowing of funds, the use of credit cards, minimizing risk, investing and planning for retirement. Such a plan also requires a vigilant thought process for the future so he/she can tweak their financial plans as needed due to changes in lifestyle and economy.
Foreclosure is an extremely serious topic for so many people. For some, it simply means that there are cheap houses on the marker, for others, it is the end of their lives as they know it. Ultimately, there really isn’t a solution to foreclosure, but there I have formulated a plan to help slow down the process.
Allers, Kimberly Seals. "How Fit Are Your Finances?" Ebony 68.9 (2013): 93-97. Academic Search Complete. Web. 15 Nov. 2013. Bauer, Gabrielle, and John Southerst. "A promising retirement: your life, your way." Maclean's 18 Feb. 2013: 37+. Opposing Viewpoints in Context. Web. 15 Nov. 2013.
Personal financial planning is important because it helps you prepare financially for the future. My first short-term financial goal is to have an 8-month emergency savings account. This class helped me understand the important steps needed to achieve my financial goals. “Successful financial planning requires specific goals combined with spending, saving, investing, and borrowing strategies based on your personal situation and various social and economic factors, especially inflation and interest rates” (Kapoor, Dlabay & Hughes, 2012). First I evaluated my spending habits. This allowed me to see where I was