Personal finance - FNCE 627 – Personal Financial Planning
Instruction to final project
This project is based on the data that you have been collecting so far since the beginning of the class (your or your family’s) income and expenses. Prepare your own financial plan!
Use at least one month’s or 6 weeks data that shows all your expenses and incomes. Expand it to 12 months which shows your annual financial data. Make sure that you detailed all sources of income and catagorized all your expenses into fixed, variable, and discretionary expenses.
Based on your collected financial data,
1. Prepare your cash flow statement. Just like your previous individual assignment, add screenshots of your financial analysis (from Excel). Use a pie chart to show your categorized expenses.
2. Comment on your spending habit and pinpoint options or possibilities to reduce your expenses or improve your spending pattern or habit,
3. Prepare your current balance sheet.
4. Create your improved future budget and link that to your SMART goals. Your goals should be short-term (saving for emergency fund), medium-term (your own choice) and long-term goal (Retirement). Clearly show how you want to achieve those goals.
5. Indicate your investment plans to achieve your goals even if you are not investing currently. Discuss the types of funds that will help you achieve your goals and estimate the possible investment returns for your investments. Choose a specific asset allocation that matches your risk tolerance and time horizon by creating a pie chart in Excel of specific investments that you would like to invest in. Please choose any investment that you think is better from the link below https://www.bankrate.com/investing/best-investments/#what-to-consider or any other investment options that you are aware of, may be from your own experience, country, and others).
6. Explain your risk management plans.
Remember that any financial plan should have basic assumptions (like life expectancy, time to retirement, how much you should save by the time you retire, exchange rate, inflation rate, and others)
The report has to be written using APA format i.e,
1. Double-space all text, including headings.
2. Use an accessible font (e.g., Times New Roman 12pt., Arial 11pt., or Georgia 11pt.).
There will be a 5 % reduction of mark for any additional one page of report. APA format of citation must be used. A screenshot of your financial statements and asset allocation must be added inside the body of the report, not in an appendix.
The report should be 4-5 pages (excluding cover page, table of contents and bibliography).