Revise Your Personal Financial Plan Reflection ✓ Solved

In This Assignment Revise Your Personal Financial Plan Reflecting Yo

In this assignment, revise your personal financial plan, reflecting your learning to date in the course. You will complete one or both of the following spreadsheets: Worksheet 11: Worksheet for Calculating the Maximum Monthly Mortgage Loan for Which You Qualify and Worksheet 9: Worksheet for the Lease Versus Purchase Decision, and write a 1-2 page paper. Consider how the purchase of a new home, vehicle, or both, as well as potential future purchases such as a vacation home or recreational vehicle, would affect your financial plan. Reflect on how these changes influence your long-term financial goals and projections.

Note: If you do not wish to disclose personal financial information to your instructor, please modify your information or provide an alternative name with realistic details. Preparing a financial plan for someone else can help you learn to create your own when ready. Remember to keep private information confidential.

Sample Paper For Above instruction

Title: Revising My Personal Financial Plan to Incorporate Future Purchases

The process of revising my personal financial plan has been an illuminating experience, especially after completing the relevant worksheets for mortgage qualification and lease versus purchase decision. These tools have provided me with a clearer understanding of my financial boundaries and the implications of major purchases on my long-term financial stability.

Initially, my financial plan was based on conservative estimates of income, expenses, and savings. However, the completion of Worksheet 11, which calculates the maximum mortgage I qualify for, revealed the importance of understanding my borrowing capacity before considering purchasing a home. This exercise underscored the significance of aligning my housing plans with my current financial situation and future earning potential. By analyzing different mortgage scenarios, I realized that opting for a more manageable loan amount would allow me to maintain financial flexibility and avoid overextending myself.

Similarly, Worksheet 9 provided insights into the lease versus purchase decision. By comparing the costs associated with leasing a vehicle versus buying one outright or through financing, I learned that my preferences and financial goals heavily influence the best approach. Given that my primary focus is building equity and long-term wealth, purchasing a vehicle seems more aligned with my objectives, provided that I choose a well-maintained used car at a reasonable price.

Furthermore, I have considered potential future purchases such as a vacation home or recreational vehicle. Incorporating these into my financial plan means adjusting savings targets and reevaluating my investment strategy. For example, securing a vacation home might require increasing my savings rate and exploring additional sources of income or investment growth to fund such an asset without compromising my retirement goals.

These reflections have reinforced the necessity of comprehensive planning and disciplined saving. They also highlight the importance of understanding how major expenditures can influence my overall financial health, including emergency funds, retirement savings, and investment portfolios. I now recognize the critical role of considering both current affordability and future financial security when making significant purchasing decisions.

In conclusion, revising my personal financial plan with these new insights has been invaluable. It has better equipped me to make informed decisions about home and vehicle purchases and to integrate future assets into my overall financial strategy. Moving forward, I plan to regularly update my plan to adapt to changing circumstances and maintain financial resilience.

References

  • Brigham, E. F., & Houston, J. F. (2022). Fundamentals of Financial Management (15th edition). Cengage Learning.
  • Fabozzi, F. J., & Modigliani, F. (2020). Foundations of Financial Markets & Institutions (6th edition). Pearson.
  • Gitman, L. J., Zutter, C. J. (2020). Principles of Managerial Finance (15th edition). Pearson.
  • Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2019). Intermediate Accounting (16th edition). Wiley.
  • Miller, M. H. (2021). The Monetary Transmission Mechanism. Journal of Economic Perspectives, 35(4), 123–146.
  • Investopedia. (2023). Mortgage Qualification. https://www.investopedia.com/terms/m/mortgage-qualification.asp
  • Consumer Financial Protection Bureau. (2022). Should I lease or buy my car? https://www.consumerfinance.gov/consumer-tools/auto-loans/
  • U.S. Department of Housing and Urban Development. (2021). Buying a Home: How to Prepare. https://www.hud.gov/program_offices/housing/sfh/buying-a-home
  • Financial Industry Regulatory Authority. (2020). Understanding Your Loan and Mortgage Options. https://www.finra.org/investors/learn-to-invest/types-investments/mortgages
  • Investing Answers. (2022). Planning for Future Real Estate Purchases. https://investinganswers.com/dictionary/fundamental-analysis/future-real-estate-purchases

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