Summary of the Case
Personal Finance
The case represents Smith’s family financial issues, and the plans available to ensure a balance in cash inflows and outflows. The Smith family complains of a cash crunch, yet the family’s annual income is about 80,000 U.S. dollars per annum. Amber and Joel understand that the family records cash outflows that were greater than cash inflows. The two do not know where the money went and had trouble setting and meeting the future goals. Amber and Joel have sought financial advice to increase their family’s total income. The family has plans to educate all their three children up to the university.
Management of personal finance is important as it enables appropriate plans for future activities. Smith’s family
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Financial records are important since individuals can use them to check whether there are financial deficits existing in an individual's family or business activities. Equally, financial information guides individuals, families, and organizations within the limits of expenditure. In Smith's family case, there was no clear direction concerning the means of expenditure. The family opted to buy a house using mortgages and bought a car on loan. Other expenses exceed the family’s overall income, making the Smiths experience hardships while planning for future activities. The family notes that there is the need to improve on savings made for RRSP and RESPs. These contributions will enable the Smiths to finance their three children’s university education without experiencing problems, as well as lead better lives during their old …show more content…
However, the financial advice calls for sacrifice and financial restrictions concerning Smith family’s overall expenditure. The family will lose child care benefits as the children go beyond the age of ten years. Additionally, the Smiths intend to increase their savings by opening a bank account, with an option of accessing the money when the need arises. However, for many banks, there is a minimum lock-up period of not less than a year. Some banks offer some flexibility after the minimum lock-up period while other banks may fail to offer such
My sister shared her testimony with Janet and how Financial DNA got her to understand her finances, to assign goals for money and live in victory. I asked Janet what where her goals? Janet expressed she wanted security, resources, and the ability to take care of herself. I informed Janet that she was in the early earning stage in life. Furthermore, Dr. David Murphy (n. d) in his lecture Introduction to Financial Coaching gave financial insight for early earners to consider as priorities. Dr. Murphy asserts, “Pay off student loans. Learn to manage money and budget. Lastly, short and medium term savings objectives” (p. 6). Janet disclosed she wanted to purchase a car but needed a down payment. Out of curiosity and to have a better understanding of Janet, I asked what kind of car did you plan to buy? Janet said “Lexus, Acura or a BMW”. I asked her did she think a thousand dollars would get her in those cars? She said, “the ad says $1000 everyone drives”. We needed to set some goals and prepare a financial statement to evaluate her finances. It was time to pray, Janet mind and spirit need calming and plan. I asked Janet to read aloud Matthew 6:25-34 and let focus in prayer on the kingdom of God and that God will add all things to you. Additionally, we need to pray for discipline, revelation and take every thought captive to obey
Having a plan for the allocation of everyday life expenses as well as your long-term financial goals. If your wife/husband is a person who lives day to day and loves to spend without really looking at a budget. This is a sign that financial management problems could be an issue that your couple will have to deal with.
Through the use of Daily Spending Diary we are able track how we are spending our money. It also allows us to manage short and long term goals. Tracking what your spending your money will let you see if your spending money on unnecessary object. For example if you’re spending less money eating at home then eating outside you can consider eating at home more than eating out side. Money management referred in the book is the day-to-day financial activities necessary to manage current personal economic resources while working toward long term financial security. Thus a Sending Diary allows us to be in track of one day being financially secured. When we are keeping track of what we are spending there is bound to have some extra money lest so in that case we might want to invest money on something beneficial like a stock. Therefore with the help of Daily Spending Diary it can result in starting an investment plan.
When searching for a book that discussed personal financial planning, I couldn’t find a more appropriate one. Right off the bat, the title caught my attention. “Your Money Your life” seemed pretty personal so I flipped the book over and the back read, “This new edition…explains their 9 step program and shows you how to: get out of debt and develop savings, make values-based decisions about your spending, resolve inner conflicts between values and lifestyle etc. The book now has my attention, I opened it up and began reading right there in the bookstore. Immediately at the beginning of the prologue of “Your Money Your Life” the authors started with a series of questions to ask yourself. Some of the questions included, “Do you have enough money, are you spending enough time with your family and friends, do you come home from your job full of life, do you have time to participate in things you believe are worthwhile and so on and so forth”. After answering no to most of the questions, I knew this was the book for me.
The following executive summary is a hybrid of the investments article, “How to start out investing right” and the four of the six major lessons in the best selling personal finance book, “Rich Dad, Poor Dad.” Two different resources that highlight the importance of education and personal financial independence through life investments. We can agree that today’s society possess numerous amounts of resources to become self-employed and financially independent. However, not everybody takes advantage of such resources and fail to become financially independent due to fear of the unknown and lack of knowledge. Therefore, the following document will highlight the overarching path to becoming financially knowledgeable by learning how
Financial planning is an important life skill to help us take better control of our financial goals by helping us to set realistic plans, evaluate alternatives and take effective measures. Financial planning is important because it can secure one’s future life. People will no longer have to worry about the unforeseen expenses such as car accidents. Financial planning goals can be divided into three steps - short term, intermediate and long term for different life situation
Money Wise Women, is a blog that is created by women for women that contains money management information. The introduction of this blog starts off by telling a story of the author’s pers...
As they are growing up, the personal financial for high school students programs will enable them to make decisions that are suitable for them.”we talk about building budgets,expenses,investing money”. Some students will refuse to take or some students can’t get a understand about what’s going
As we try to build a life, he or she will be out spending money on status symbols making it nearly impossible to achieve financial independence. To truly build a life of financial independence, we need to have the kind of support that allows us to take risks because no matter what happens, there will always be someone waiting at home that loves unconditionally. It may sound surprising, but a tremendous amount of financial success is based upon proper temperament, budgeting, discipline, and
As we all advance in years, it is far from arguable that money becomes more essential to our daily lives than we’d like to admit. And yet discouragingly, those of us who are opportune enough to have jobs misuse our finances on material desires, like cell phones, computers, iPods, and other miscellaneous commodities. But instead of valuing what is profoundly essential to one’s futures, it may be too late once we finally decide to acknowledge this information to cause any planning or change. For you see, planning is nec...
Kids nowadays have become a growing number of conscious of their family's revenue stream and financial status. They apply these money-spending principles if they venture out independently. Thus, it might be really a father or mother’s responsibility to get started on “training” their teenage kids to work with their funds wisely.
Throughout time there has always been conflict among families relating to finances. Money is typically one of those topics no one enjoys discussing, but when it is related to the well being of your family these problems need to be communicated. Recent economy issues have created an excess amount of financial conflict causing other issues to occur amongst families. These financial problems stem from many different factors such as a family member being laid off, their job producing a lower income or bad spending habits amid the family’s individuals. People cope with the feeling of not having money in many different ways. The conflict of not working or of not having a lot of money can lead to financial insecurity, taking on more hours at work,
The first subject is the matter of cash, cash, and cash. Mr. Steverman states that individuals need to have readable access to a relatively large proportion of cash. It is recommended that young individual have access to ten thousand dollars worth of cash. However in today’s market it is recommended that individuals have readable access to an amount of cash that is in the range of fifteen to twenty thousand dollars. The need for readable access to cash is for the possibility that you may lose your job. The main reason of the readable cash is so that if an individual needs the cash for an emergency the individual will be able to access it at their own bank. This cash can be used for a wide array of things in the case of an emergency. If an individual losses their job, they will need to pay bills and purchase food. The amount of the money may differ if the individual is engaged into a family, as the family will have higher bills and needs for money.
...g basis. By understanding topics such as insurance, taxes and banking, they would greatly improve their chances of being financially stable.
Money is essential for our everyday lives and people have to face choosing whether to save up or spend their money. Of course earning our money can difficult considering that it is a necessary asset that affects every aspect of our life. Every day we see people working hard to earn as much money as the can. However how they use using the all the money earned is a frequently debated topic have seen many people who earn money and can no restrict themselves from spending .They usually act like wild animals fighting for food and being separating from the delusions of business. People are usually confused and frustrated by the amount money the use in a week without knowing that their daily impulse buying objects have piled up. Although it can be very hard to control there are many easy steps to stay away y from spending and instead saying up. Setting a goal, recording the amount you spend and even lowering your expenses can be small steps that will lead to great success in saving for the future