Homework answers / question archive / Part 1 – Goals - Chapter 1 After carefully reviewing your current financial situation, create two short-term, medium-term, and long-term goals

Part 1 – Goals - Chapter 1 After carefully reviewing your current financial situation, create two short-term, medium-term, and long-term goals

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Part 1 – Goals - Chapter 1

After carefully reviewing your current financial situation, create two short-term, medium-term, and long-term goals.

Your short-term goals should be goals that you can realistically accomplish within one year. They may include but are not limited to, paying off credit card balances, beginning a TFSA or other retirement-type savings program, or getting your income and expenses in balance. Your medium-term goals are goals that you should realistically be able to accomplish in one to five years. They may include but are not limited to, purchasing a new vehicle or paying off school loans. Long-term goals will take longer than five years to accomplish. They may include purchasing a home, taking a major trip (such as summer in Europe), or saving sufficient funds to retire at a predetermined age. The goals that you develop are the first draft and may be added to or modified as you proceed through this course. This course is designed to provide you with information and insight that will help you make informed decisions about your financial future.

Be sure that your goals are S.M.A.R.T. The majority of marks on this segment of the assignment will come from the detail, you include regarding goal planning using the SMART process. 

 

 

Part 2 – Financials – Chapter 3

Prepare a personal cash flow statement and a balance sheet.

You should prepare your cash flow statement based on your current financial position. Pick a specific date (e.g., March 31^st) to complete your balance sheet. To obtain a value on your assets, if you are unsure, go to the internet to see what people are selling similar assets for on classified websites (e.g., Kijiji). When listing your liabilities, be sure to include any student loans even if they are not payable until after graduation.

When preparing your personal cash flow statement, break down all expenses into monthly amounts. For example, if your car insurance is $700 per year, divide the $700 by 12 for a monthly amount. Personal cash flow statements should be set up based upon a monthly frequency. If, after preparing your personal cash flow statement, you have an excess of expenses over income, you should review in detail each expense to determine its necessity and whether it can realistically be reduced in order to balance your income and expenses. Keep in mind that you need to include a debt repayment line in your cash flow statement, if applicable.

 

 

Part 3 – Credit – Chapter 6

List your current debt related to credit, and determine how long it will take you to pay it off.

Make a list of your current debt related to credit (credit cards, student loans, lines of credit, etc.), determine you are required monthly payments and calculate how long it will take to pay off your current debt. If you have borrowed money from friends or family and are expected to pay it back, you need to include it here.

If you have no debt, you may skip this part!