Barnes_ECO110_Week7Assignment

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Strayer University, Washington *

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Economics

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Jan 9, 2024

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1 Week 7 Assignment Peter Barnes ECO110 Isaac Boring November 21, 2023

2 Developing Your Personal Financial Plan Productivity Plan If you want to achieve financial stability and meet your financial goals, creating a financial plan and budget is crucial. To create a practical financial plan and budget, I will take the following steps: 1. Determine my financial goals to have a clear understanding of what I want to achieve financially. 2. Take stock of my current financial situation, including income, expenses, debt, and assets. This will help me understand my financial standing and identify areas where I can improve. 3. Create a budget that accounts for all my income and expenses. This will help me keep track of my spending and ensure I stay within my means. 4. Look for areas where I can cut expenses and reduce spending. This will help me save more money in the long run. 5. Set up savings goals and determine how much I want to save each month. Having savings goals will help me achieve my financial objectives. 6. Regularly monitor my progress and adjust my financial plan and budget as needed. This will help me stay on track and make sure I'm making progress towards my financial goals. Financial Savings Goal and Time Frame My financial goal is to save $20,000 for a down payment to buy a house over a time frame of two years. Investing in a home is significant in the long term and requires careful planning and preparation. To ensure that I have better mortgage options and reduce overall housing costs, I decided to save $20,000 over two years for a down payment. By saving up this amount, I will also be able to avoid paying private mortgage insurance (PMI). Saving $20,000 for a down payment to buy a house over two years is a reasonable goal because it gives me enough time to save a significant amount without putting too much pressure on my finances. A down payment of $20,000 is also a good starting point since it will give me a wide range of mortgage options to choose from and help me avoid paying private mortgage insurance (PMI). Additionally, having a sizable down payment will reduce my overall housing costs and help me build equity in my home faster. Overall, saving $20,000 for a down payment over two years is a wise financial decision to help me achieve my long-term goals.

3 Housing Choice My housing choice is to rent a two-bedroom house with $15,000 yearly rent ($1,250 monthly). I considered several factors when selecting my housing option. I chose a two-bedroom house because it is more affordable than a larger home and is suitable for my current living situation. I also chose a location that is close to my work and has access to public transportation, which will help me save money on commuting. Overall, renting a two-bedroom house with affordable yearly rent will help me save more towards my financial goal and avoid the immediate financial burden of buying a home. Non-Rent Expenditures To achieve my savings goal within the two-year time frame, I made careful decisions regarding my non-rent expenses. I created a budget plan for my monthly expenses, which includes groceries, utilities, transportation, and entertainment. I set a monthly budget for each category and made sure to stick to it to avoid overspending.For groceries, I decided to buy in bulk and plan my meals in advance to save money on food expenses. I also opted for generic brands instead of high-end brands, which helped me reduce my grocery bill. Similarly, I chose to conserve energy and water usage to lower my utility bill. For transportation, I also opted for carpooling whenever possible and avoided unnecessary trips. For entertainment, I chose to cut back on my subscriptions. By making these decisions, I was able to save a considerable amount of money on my monthly expenses, which helped me achieve my savings goal within the two- year time frame. Reflection on Productivity Planning Having a step-by-step productivity plan was incredibly helpful in creating my personal financial plan and budget. It made the process less overwhelming and more manageable by breaking it down into smaller, actionable steps. By following the plan, I was able to set clear financial goals, create a realistic budget, and track my expenses effectively. This approach also helped me stay motivated and accountable, as I could see my progress at each step along the way. Overall, I would highly recommend a step-by-step productivity plan to anyone looking to improve their financial planning and budgeting skills.

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