Personal Financial Planning
Personal Financial Planning
Develop a workable operational budget
Make payment to credit cards
Formulate a savings plan
Long Term Financial Goals for John and Beth
Formulate and implement an investment plan
Make payments to an investment plan
Complete loan repayment
Time Frame for Accomplishing Long-term and Short-term Goals
Many economists believe that the time frame for accomplishing long-term and short-term goals should be between one and two years (Kaplan & Atkinson, 2015). In the case of John and Beth, the adequate amount of time that shall be required to formulate a workable financial operational budget shall be 2 weeks, while the repayment of credit cards shall be performed within a period of 12 months. Consequently, the formulation of a savings plan shall be undertaken within a period of one month. This is appropriate because it shall allow John and Beth adequate time to determine the amount of financial expenditure and approximate expenditures that they may incur in future.
In the case of the long-term goals, John and Beth shall require three years to assess and engage in an investment plan; the same amount of time shall be required make an investment. Besides, Beth and John may require a period of 5 years to complete loan repayments in an event that they have acquired financial resources through loans or any property through loans.
Actions taken to achieve each Goal
Develop a workable operational budget: This shall be achieved through performing an assessment of issues that affect individual’s expenditures, hence, providing adequate data for the formulation of an operational budget.
Make payment to credit cards: John and Beth have to secure a source of income either through employment or investment to ensure that they have adequate financial resources for making credit card repayments.
Formulate a savings plan: This requires Beth an John to undertake market research with an intention to access imperative savings information.
Long Term Financial Goals for John and Beth
Formulate and implement an investment plan: Investment plan requires adequate data concerning the best investment decisions. John and Beth will have to explore a variety of investment options to ensure that they have adequate and efficient data.
Make payments to an investment plan: John and Beth shall have to access adequate and proper financial resources to make payments to their investment plans
Complete loan repayment: Making loan repayment requires adequate financial resources; in this regard, John and Beth shall engage income generative activities to accrue proper financial resources.
Reference
Kaplan, R. S., & Atkinson, A. A. (2015). Advanced management accounting. PHI Learning.
