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Budgeting as a tool to control and manage operations
Financial planning and implementing applications
Financial planning and implementing applications
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With reference to (Gitman, Joehnk and Billingsley, 2016), personal financial planning is defined as a systematic process that considers the important elements of an individual’s financial affairs and is aimed at fulfilling his or her financial goals. In other words, personal financial planning expounded on the structured procedure of taking significant factors of a person’s finance into account so as to attain the particular results that person wants.
This methodical approach encompasses the following six steps known as establishing of personal financial goals, generating a variety of financial plans, executing of the financial plans, developing and implementing budgets, assessing the outcome through financial statements analysis and adopt
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As presented, the different stages that an individual will go through are early childhood, high school and college, family formation, career development, pre-retirement and retirement. From early childhood to early adulthood, an individual has a propensity to seek financial support from his or her parents until an individual lands his or her first job. The visible improvement in an individual’s income stream occurs after he or she enters stable employment, starts a family and establishes a career. Therefore, it is inevitable that the short-term, intermediate and long-term financial goals of an individual differ throughout the distinct phases of …show more content…
Thirdly, savings and investment planning comprises building of wealth by stashing money away for a rainy day and spending money on financial products until the end of an individual’s life. The examples of financial products are government bonds, corporate shares, preferred stocks, real estate investment trusts and others. Fourthly, employee benefit planning represents proper management of employee’s welfare in coordination with an individual’s emergency backup plan throughout his or her life. For instance, employee benefits like health, life together with disability insurance, pension plus profit sharing plans, 401(k) supplemental retirement program, child care, elder care along educational assistance programs, sick leave, annual leave, employee discounts, subsidized parking and so on. Fifthly, tax planning includes a meticulous observation of the existing and estimated revenue before initiating appropriate strategies to curtail taxes. Lastly, retirement and estate planning consists of a complete accumulation of an individual’s assets at the early stage of his or her life through high returns on investments together with savings for personal use and the successful transfer of such large reserve of wealth to his or her inheritor (Gitman, Joehnk and Billingsley,
For the purpose of this paper, the American Dream will be defined as the idea that you can achieve financial stability through hard work, which often means going to college. The term “college” refers to any undergraduate or graduate program at a secondary institution. This paper aims to examine the relationship between attending college and one’s ability to achieve the American Dream. Attending college is thought to be an important step in obtaining the American Dream, primarily because receiving a higher level of education tends to lead to a higher paying job and furthermore a financially stable future. However, this isn’t always the case due to an increase in the need for students to take out loans and increase their debt in order to afford college expenses.
Finance is the most important asset in anyone 's life. The lack of adequate financial planning may results in insecure life. Wealth Building and assets management ensures a secure life without any financial crunches and problems. Personal asset management ensures the growth of wealth in the right direction by implementing an investment strategy that aims at balancing the risk in terms of rewards in accordance with the investor’s financial goals, risk tolerance and investment time frame. There are basically three assets classes i.e. equity, fixed income and cash or cash equivalents that behave differently over time in respect of risk and return.
Haggerty, Sue (Jun-Aug2017) Retirement planning. Catholic Digest Vol. 81 Issue 7, p33-38. ISSN: 0008-7998 Accession Number: 123563838 Database: MasterFILE Premier 6p. http://www.catholicdigest.com, http://web.b.ebschost.com’umuc.edu/detail
However, because of advances in technology and industry, the United States is well-positioned to enact social policies to ensure that millennials and future generations will be able to grow old successfully and healthily. Coupled with extensive coaching on the pros and cons of current career fields and their projected salaries, students will be more well-informed before making life-changing decisions. All these can help millennials save for their future while working toward success. Enticing all Americans alike, the ideals of the American Dream appeal to many as a foundational endeavor in American society and
Financial planning can often be complicated based on each individual's needs, desires, short-term and long-term goals. In each of these individual and deeply personal situations, multiple variables must be considered before substantial recommendations can be made to develop a comprehensive financial plan (Kapoor, Dlabay, & Hughes, 2014). However, by utilizing the six key fundamental steps of financial planning, including, 1) assessing and acknowledging the current financial situation, 2) establishing attainable short term and long term financial goals, 3) recognizing financial options, including saving, spending and sharing funds, 4) assessing and analyzing each alternative and its' consequences, and 5) developing and executing the most reasonably
The cause of low retirement fund can be traced back to lack planning. Many people depend on their Social Security for their retirement. Every pays tub shows that the government taxes their salary. This encourages them to not save earlier in their life, often it is almost too late when they start saving. In an effort to help the unpreparedness, JP Morgan can have talks in different companies, explaining the employees on ways to plan their retirement. Even though this plan may not s...
Students who have just graduated high school will be breaking away from their parents and will not know how to financially support themselves, if they are taught financial education, they will have no problem making proper financial decisions. Financial behaviors in the workplace from employer to employer can oftentimes be very biased. The main objective of financial literacy in the workplace is to improve financial behaviors. “...a small but significant minority of employers instituted educational programs to provide employees with information about financial decisions and retirement planning. ’’(Bernheim, Douglas, and Daniel).
In today’s age of widespread internet usage and abundance of resources, one would expect that young people would grow up to be financially literate citizens. However, that is not the case. In fact, 41% of adults grade themselves with a C, D, or F when it comes to their own personal financial knowledge according to Junior Achievement. More disturbingly, one in four Americans have less than $1,000 saved for retirement. Despite this financial illiteracy crisis, my resolve is stronger than ever.
I became an enthusiast of finance ever since I was at high school. At the political economy class, my teacher asked us: if you have a million RMB, how would you use it? She then introduced us the concept of investment, and I was intrigued specifically by the stock. For the latter two years of my high school, I have been reading books and articles regarding the stock market in the U.S. and in China. As one of the outstanding students ranked top 1% in College Entrance Exam in Hainan Province, China, I was accepted by the City University of Hong Kong with a full scholarship. With the strong interest in finance, I chose quantitative finance and risk management as my major.
Finance is a field that had always fascinated me right from my undergraduate college days. What make me interested in this particular field of study are the art of finance and the complexity of investment market which would allow me to employ my personal skills, such as analytical and communication skills, along with my personal characteristics such as dedication and compassion for what I do. As one of the most important sector in the world, I believe it would provide me with a broad range of career options.
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.
As an undergraduate who studies accounting and finance. I started to learn about accounting and finance since 2013 when I was in A-level. At that time, we have been asking to present business news in each economic class. It has motives me to gathering finical information from The Economist and BBC The world business News report. The experiences of working as an intern at the Bank of HEBEI in 2013 and PWC in 2016 have encouraged me to become a professional accountant. All these had given me a great opportunity to know accounting and finance comprehensively and also reinforce my determination of continue studying accounting and finance. Therefore, I have decided to apply for your postgraduate degree course to further
I am currently majoring in Finance at Carlson School of Management, and I have decided to explore the career and future growth of a financial analyst. I chose to explore this career because some of my cousins work in this field and I’m interested in numbers and analysis. I also have an interest in following the stock market and working in a stimulating environment. What sets me apart from others is that I’m able to use time management efficiently. I’m able to study and complete major assignments while still finding plenty of time to socialize with others. Having taken StrengthsQuest last year, I learned that I strive for the future, I’m often positive, and I’m a believer in harmony. I believe in consistency, the idea that all people should
At a glance, accounting might appear as a repetitive cycle of preparing and examining financial statements. However, a brief exposure to accounting has taught me how chaotic it can be for accountants. An accountant captures and represents the information of businesses. By reviewing financial operations, an accountant helps a business run efficiently. This profession can be intellectually stimulating and rewarding. After learning about accounting, I cannot help but be interested and desire to work toward a degree in accountancy. In my studies, I have learned accountants require a plethora of qualities to be successful. And to mature from a student to a professional, I must resolve to strengthen my weaknesses. There is much I must learn and achieve, but a degree in accounting is well worth the time spent.
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