the financial system
Chapter 27 introduces the financial system and the importance of assessing time and risk in making financial decisions. In this Discussion Board, summarize your own financial plan balancing present and future needs, especially future retirement needs.
In your post, you may want to apply: the Rule of 70, present value, insurance, diversification, and risk. How will you stay motivated to meet future goals (home ownership, business start-ups, family goals, and/or retirement with the human tendency to prefer “now” over “later?”
Note: To earn full credit for this graded discussion post at least two times. First, post your own thoughts. This post should be substantial (containing at least 200-250 words). Next, respond to another student. Be polite, professional, and thoughtful. These posts should contain at least 100-150 words. All posts need to be in your own words. Any use of outside resources requires that you cite and reference your sources in APA format.
ANSWER
Chapter 27: The financial system
Personal finance involves the management of money and financial decisions for a person, including investments, budgeting, and retirement planning. Personal finance is crucial since it helps one manage both the present and future finances, hence enabling future stability. My present daily spending includes paying for day to day bills, fuel costs, food, and beverages. Other types of my current spending include paying for health insurance, gym costs, car insurance, entertainment, Shelter, Income taxes. Transportation. Food expenditures. Personal insurance payments and pension contributions. I also spend household operations, recreation, clothing and accessories, household furnishings and equipment, Gifts of money, alimony, contributions to charity, and miscellaneous expenditures. Other daily spending in my budget include personal care, Games of chance, Reading materials, and other printed materials.
AS much as my current financial situation is great. I need to have investments in the future that will suit my needs. I hence have a savings plan, where I save at least 30% of the amount of cash I receive every month, where I plan to use a specific amount of the money in starting a new e-commerce business. I also pay for my mortgage, wherein in the next five years, I will comfortably own a house with no debt.
Owning a house is part of a retirement plan, where I will live with my family. Starting a business will help me with financial freedom, where I expect a growth in the company, which will ultimately lead to a growth in revenues and profit margins. I will also use a part of my savings to go for holiday destinations across the globe, which is a part of my bucket list.
