Building A Financial Planning Process Essay

Building A Financial Planning Process Essay

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A reflection of the work done to date in this course has given me much clarity on the goals that I wish to achieve in my life and the directions that I need to take to achieve them. In module three, I was able to start a financial planning process, in which I was able to determine my current financial situation concerning income, savings, living expenses, and debts through the utilization of a balance and income statement; financial objectives and personal goals sheet. I prepared a list of current asset and debt balances and amounts spent for various items providing me with a foundation for financial planning activities. In module Five, my financial process continued through the evaluation of a home affordability in which I used Maximum Mortgage Worksheet to calculate my mortgage limit so that I could assess the maximum loan size I would for qualify through the eyes of the lenders. First of all, a maximum ratio of 28% and 36% was used to measure the PITI and the PITI plus other Debt Payments to Monthly Gross Income and the appraised home value. Again, the appraiser home value is a method in which most lenders limit mortgage loan to 80 percent of the appraised value of the house.
Consequently, through this financial planning I was able to recognize both my financial challenges and opportunities that lied before me. Overall, the challenges and opportunities that I faced after assessing each worksheet still exist to date concerning the purchase of these new assets and investments that are summarized above. As a result of this assessment, again I must do as previously stated in my financial plan that is to work on a combination of issues. Regarding my balance sheet, I must continue to assess my liquidity to ensure that I have enough ...

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...he cost-benefits to of being protected against the financial consequences of the high cost due to increasing life expectancies and the resultant rise in the chance that you may eventually need some level of care. In short, creativity in decision making is vital to effective choices. Therefore, it is essential to consider all of the possible alternatives will help you make more efficient and favorable decisions. Moreover, when life events affect your financial needs, the financial planning process will provide a vehicle for adapting to those changes. Also, specific financial goals are vital to financial planning. Others can suggest financial goals for you; however, you must decide which goals to pursue. Your financial goals can range from spending all of your current income to developing an considerable savings and investment program for your future financial security.

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