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GBS132 Lesson 1 Exercise Template
Name: Denise Johnson
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 yourfinancial life. Your answer should include a minimum of 3 well-written paragraphs.
The personal financial process is a six-phase cycle, to manage financial resources and obligations. It includes different activities, including budgeting, saving, investing, and managing debt. This process begins with identifying financial goals, followed by the development of a strategic plan to achieve these objectives. The plan typically includes elements such as income generation, expense management, asset allocation, risk management, and retirement planning. The personal financial process is not a one-time event but an ongoing cycle of assessment, planning, execution, and review. It is crucial to your financial life because it provides a roadmap for achieving financial stability and personal financial goals, such as buying a car, or a home, or saving for retirement.
By effectively managing your finances, you can ensure that you have sufficient funds to meet your current needs and future aspirations. (Billingsley et al., 2020) The sooner you implement financial planning the more you can gain, it can help you build wealth over time, protect against financial hardship and uncertainties, and improve your overall quality of life. Understanding and implementing the personal financial process is an essential step towards achieving your financial goals and securing your financial 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)Denise
Date
November 07, 2023
Short-Term Goals (1 year or less)
Goal
Priority
Target Date
Cost Estimate
Emergency Fund
2
11/01/2024
$8,000
Pay Tuition
1
04/01/2024
$2,500
Buy Laptop
3
12/31/2023
$400
Intermediate-Term Goals (2 to 5 years)
Goal
Priority
Target Date
Cost Estimate
Buy a Car
1
06/01/2025
$10,000
Go on a cruise
3
01/20/2026
$8,000
Invest in AtLastAuto
2
12/01/2026
$10,000
Long-Term Goals (6+ years)
Goal
Priority
Target Date
Cost Estimate
Buy an RV
1
11/03/2043
$75,000
Retirement savings
2
11/01/2043
$100,000
Buy a House
3
12/31/2039
$200,000
Page | 2
GBS132 Lesson 1 Exercise Template
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.
My decision to get a degree in business was mainly set to action because I want to acquire the skills to successfully run my nonprofit organization in the future. But once I finish my degree in business, I will have the skills needed to obtain a professional career. I believe I'm looking at human resources. My job is critical in achieving my personal financial goals because the only way to measure the success of those goals is income. When I first start working, I will be in the asset acquisition planning phase just starting to get my income budgeted into savings and bills, and prioritizing it towards my short and long-term goals. Having a steady skill-required position is going to aid in liability and insurance planning as many jobs offer insurance as part of the employee benefits. As I move on to the savings and investment planning phase my position in human resources will offer me options for investment through an IRA or a 401K plan most companies offer employee matching so not only will I be obtaining my goals with my own money, but I'll be getting an extra helping hand through my employer. Having an education-backed career will definitely make a difference in achieving my financial goals it isn't the salary alone but also the other benefits that are offered by the company that helped me achieve them.(Billingsley et al., 2020)
References
Billingsley, R., Gitman, L. J., & Joehnk, M. D. (2020). PFIN (7th ed., ch.1). Cengage Learning. PFIN. Retrieved from https://platform.virdocs.com/read/687931/24/#/4/4
Billingsley, R., Gitman, L. J., & Joehnk, M. D. (2020). PFIN (7th ed., p. 14). Cengage Learning. PFIN. Retrieved from https://platform.virdocs.com/read/687931/25/#/4/4
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