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GBS132 Lesson 1 Exercise Template
Name: Darlene Peralta Having a clear financial plan is key in achieving your financial goals. This exercise is designed to help you gain clarity and insight into your financial priorities and objectives. Follow the instructions below to complete the assignment.
Instructions:
1.
Answer all questions in the template to complete the assignment. 2.
You must include at least one citation and reference from the textbook.
3.
Remember to cite all sources using APA format as described in Lesson 0.
4.
For Part B, assume that the cost estimates are represented in today’s dollars.
A.
Define the personal financial process, what it encompasses, and why it is important to your financial life. Your answer should include a minimum of 3 well-written paragraphs.
There are many areas included in the personal financial process. A couple of those areas include prioritizing saving for retirement and investing for the future. It is the process of planning, financing, and optimizing
your spending to advance your financial situation. The personal financial process also includes budgeting, insurance, and mortgage planning. You will be more effective at managing your money and preparing for future success by understanding these terms.
The personal financial process encompasses income, expenses, assets, debts, investments, and other financial matters. Some investments include stocks, bonds, and mutual funds. All of these areas are crucial to shaping your personal financial planning. It is vital to set goals and work towards them to ensure a secure financial future.
The personal financial process is important to our lives because it shapes our financial goals for our future. It can help us to obtain what we want out of “the good life” as well. “It’s impossible to effectively manage your financial resources without financial goals.”. (Billingsley, Gitman, & Joehnk, 2020, p. 7). By actively managing
your income, expenses, and investments, you can take control of your finances and work towards achieving your financial goals. It is crucial to dedicate time to financial planning because the earlier we begin, the better prepared
we can be for unseen personal changes in the future. Page | 1
GBS132 Lesson 1 Exercise Template
B.
In the table below, set at least three financial goals for yourself for the short, intermediate, and long-term. In the priority column, rank each goal from 1 to 3, with 1 being the most important. Assume all cost estimates are represented in today’s dollars. Personal Financial Goals
Name(s)
Date
March 29, 2024
Short-Term Goals (1 year or less)
Goal
Priority
Target Date
Cost Estimate
Car High May 2024
2,600
Apartment High October 2024
2,500+
Pay off debt/Build credit 100 points
High July 2024
3,500
Graduate from barber school
High March 2025
2,250
Intermediate-Term Goals (2 to 5 years)
Goal
Priority
Target Date
Cost Estimate
Get real estate license Medium 2026
2,000
Have a 700+ credit score
High 2027
-
Own land/home
High 2028
30,000+
Invest in IRA accounts
Medium 2026
2,000
Long-Term Goals (6+ years)
Goal
Priority
Target Date
Cost Estimate
Build vacation home
Medium
2033
15,000
Change careers/recreate myself
High 2035
-
Travel/vacation Low 2030
-
Start a business
High 2035
10,000+
C.
Identify your chosen career path and explain how you plan to use it to achieve your financial goals. Your response must include a minimum of two paragraphs.
In the future, I see myself transitioning into a new career and as I continue to mature. Currently, I am committed to pursuing a career as a barber. The idea of being self-employed and embracing the entrepreneurial aspect of the barber profession is very appealing to me. I am confident that I will thrive Page | 2
GBS132 Lesson 1 Exercise Template
as a barber and eventually establish and manage my own thriving barbershop. Ultimately, my goal is to establish a barber school to have the ability teach others as well.
I am determined to achieve my financial goals as a barber by maintaining steady consistency in my work to perfect my craft. Perfecting my craft will allow me to maximize my time and money more effectively. To achieve my financial goals, it's essential to maximize my time and focus on branding myself to build clientele. Investing my tips as a barber will help me to reach my goals financially. Staying committed to my business plan will not only guide me toward success but also enable me to stay focused and anticipate any challenges in the future.
References
Billingsley, R.S., Gitman, L.J., & Joehnk, M.D. (2020). PFIN (7th ed.) Cengage Learning.
Page | 3
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i assessment.education.wiley.com/was/ui/v2/assessment-player/index.html?launchld=1d52287e-dfd8-4d2a-80c9-4cbf51a01297#/question/5
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