Reflection Of Personal Finance
explanatory Essay
1820 words
Personal Finance
Personal Finance is a class I’ve wanted to take for a while now. My major is Finance not because I want a career in finance but more to learn about finance for my own personal situation. This class taught me so much! During this class I was able to evaluate my financial situation and set financial goals for myself. The four topics that helped me the most were emergency savings, buying a car, purchasing a home, retirement, and estate planning. After completing this class I have a better understanding of these topics and how to achieve my financial goals.
Emergency savings 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
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In this essay, the author
- Explains that they wanted to take personal finance, not because they want a career in finance, but more to learn about finance for their personal situation.
- Explains that personal financial planning is important because it helps you prepare financially for the future. their first short-term financial goal is to have an 8-month emergency savings account.
- Explains that buying a car is one of the few largest purchases most people will make in life. following the steps mentioned in chapter 8 can help consumers make an educated purchase.
- Explains that negotiation is the most common way of purchasing a vehicle so it’s important to know the fair market value. kelly blue book on-line is one of many websites that can help consumers determine the value
- Explains that when considering financing options, consider the cost of the vehicle, how much your current car will sell for, the amount your down payment will be, and the loan you qualify for.
- Explains that post purchase includes fixed and variable costs, such as depreciation, interest, insurance, and fees. websites like intellichoice can help research and compare vehicle costs.
- Explains the pros and cons of renting and buying a home.
- Explains that following the steps in chapter 9 can help them achieve their goal of purchasing a home.
- Explains the importance of estate planning, which includes savings accounts, investments, insurance, retirement, wills, and trusts. dying without a will results in property being distributed based on state laws.
- Explains that they started a retirement plan to prepare themselves in the event they're not able to retire with the military. mutual funds, iras, and 401ks are all options for retirement savings.
- Explains the four pillars of retirement: social security, employment based planes, personal financial assets, and retirement choices.
- Explains that personal finance has taught them valuable information that they can apply to their own financial situation. they understand the importance of an emergency fund, and how having an estate plan can help their family during tragic events.
Some fixed costs are depreciation, interest, insurance, & fees. Some variable costs are gasoline, tires, and maintenance on the vehicle. “The largest fixed expense associated with a new automobile is depreciation, the loss in the vehicle’s value due to time and use”(Kapoor, Dlabay & Hughes, 2012). An automobile purchases price might be cheap but when factoring in the fixed and variable cost the automobile could possibly cost more than expected. Websites like Intellichoice.com can help research and compare vehicle costs. This website shows the shopper how much it cost to own the vehicle for 5 years. When researching a vehicle to purchase it is important to consider these costs in order to make a good
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- Opines that a wide range of financial instruments were made available to more members of the population.
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- Defines financial literacy as the possession of knowledge and understanding of financial matters. it is used in conjunction with personal finance matters like real estate, insurance, investing, saving, tax planning, and retirement.
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- Opines that workplace programs usually offer very limited interventions, such as one-time retirement seminar or one benefit fair. multiple financial education sessions have been proven to be effective in encouraging savings among low income earners.
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