Personal Financial Plan

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

Personal financial planning is a broad area that specializes in helping people develop economic goals and plan for financial stability. It utilizes a combination of cash flow funds, employee benefits, insurance and financial allotments for budgeted items like education, investment, and retirement, all the while contributing to charitable and community organizations (Mendlowitz, p. 12). In some simplified cases, such as Nina, consulting a financial planner may be of little to no benefit. However, for the Blake's who are in the so-called "sandwich generation", with more complicated family demands and financial needs, consulting a financial planner may present a significant advantage to develop a firm plan to move in the right direction for the future of their college-age children, their aging parents and themselves. After determining if a personal financial planner is indeed of benefit, the first essential element is to start saving. However, in Nina's case, it is detrimental to her plans to initiate a strong savings plan and then begin to conquer her credit card debt. In Patrick's situation, considering that his savings could financially support him for only 90 (ninety) days, pending a life-altering event, such as an accident or illness, it would be imperative that he minimize spending while maximizing available

Using Beau's "The Master Plan" as follows as a guideline can give all involved in the scenarios a strong starting point (Beau, 2006. A strong plan, with or without the assistance of a financial planner, that includes listing income and assets, debt and insurance and investments is the first step. After determining any variables, both the known variables and potentially any unforeseen variables, the key is to start saving for the future. Then, and only then, should each of the individuals in the referenced situations begin to conquer any outstanding debt, including the dreaded credit card debt. By performing due diligence and researching options such as lower rate and transferring balances, this can become a fairly painless transition. In Blake's situation, it may even be necessary for their college-age children to research other options, such as student loans, grants, and scholarships, instead of them funding their college educations with their retirement savings. Student loans, etc are attainable; however, retirement loans are not. Last, but not least, utilizing insurance benefits may also be an additional form of security from financial disaster, especially for the middle age "sandwich generation" whose children and parents are dependent upon them for financial contributions (Beau,