Financial Goals Assignment Example | Topics and Well Written Essays - 1500 words

Financial Goals - Assignment Example Therefore, for the next 5 years, I would like to save $50,000 to enable me expand my small electronics shop to a larger one with at least 2 branches. I would also like to pay for a down payment on a house in the next five years being that I would have graduated and would like to be on my own. The down payment of the house would be $20,000 which I’d like to save for and pay over five years. Over the next ten years however, I would expect that my kid shall have become old enough to begin going to school, therefore, I’m going to save $50,000 to enable my kid go to school. The list of my goals and how they’ll be achieved are in the table below; Financial Goal Time Frame Amount Monthly Cost Save for House down payment 5 years $20,000 $333.33 Save for Business expansion 5 years $50,000 $833.33 Save for Child’s Education 10 years $50,000 $416.67 Total monthly cost $1583.33 Cash Management Since I know very well that money must be well planned for, for one to achi eve her goals, I will apply proper cash management skills in order to be able to achieve my goals. For instance, my parents give me $5,000 monthly for personal use after paying for me all my bills and buying for me all I need. I sat down one time and realize that if this money is managed well, and I save just $1,000 0ut of it monthly, I’d be having $60,000 after 5 years. ... This function involves self denials of pleasure and leisure to make sure you put your money into proper use. In the next ten years, I’ll try to reduce on my daily spending on clothing items and shoes as well as snacks just to enable me to save some money to meet my financial goals. I’ll try to use a budget for every shopping and avoid impulse buying. My shopping list in that case will have a few of unnecessary and luxurious items. I’ll just go for the major items that will keep me going as long as I meet my financial goals. Credit and Debt Management During the next five years, once I get employed and be on a payroll, the first thing I’d like to do is to see my small electronic enterprise spread to most parts of the State. This would require much cash, I know. But I’ve a plan to obtain a $2 million credit from the bank to enable me expand the business first in every part of the State, then in the next ten years, take it to other States after getting enough capital. I’ll choose a bank that gives credit for businesses at an affordable rate. That will mean that I’ll have to shop around for the different interest rates that different banks charge for their business loans. I’ll be able to service my credit from the revenue I get from the business as well as with part of my salary. At the same time, for me to make bigger sales, I’ll have to supply my products to retailers at affordable prices for them also to make profits. I’ll be able to consider some retailers who can only manage to take the products on credit and pay later after they make some sales. In this case, I’ll make the bank be the one to collect my debts on my behalf from my debtors. This will be an efficient way of debt collection as it’ll enable me to transfer the risk