Can I get assistance with economics completed by Tuesday, Midnight?

ECO110

Assignment 2 Financial Plan Explanation Word Template

While writing responses to the prompts below, you may need to refer back to the budget you created in the Assignment 2 Financial Plan Budget Excel Template. Make sure you have completed your budget before completing this portion of the assignment.

Questions

1. Identify the savings goal and the time frame you determined for reaching your goal. Why is the time frame you identified realistic?

Answer: in the savings goal. I choose to save a down payment of $40,000 to buy a house. The amount will be saved in ten years, thereby I will be contributing $4,000 annually towards attainment of the set goal. The goal is realistic and manageable as a small proportion of my income will be dedicated to housing. It will also assist me in reducing the housing expenditure which covers a quarter of my income.

2. Explain why you chose the housing option you did and how it will help you achieve your selected financial goal.

a. What considerations, if any, did you give to the following when selecting your housing option?

i. Time frame for savings goal.

ii. Familial situation.

iii. Quality of life.

iv. Trade-off decisions.

v. Other considerations.

Answer: choosing the Housing option is not easy. For the housing option, I chose to rent an apartment for $12,000 per year. Renting a house is very expensive and a room is very small for a person with a family. In ten years, I will have paid my down payment and have the house. Renting a house will have many expenditures as compared to an apartment. Housing takes a quarter of my income and will require careful analysis to ensure that in ten years, I have reduced the proportion partially if not wholly.

3. Explain your choices for non-rent expenditures and how they will help achieve your savings goal within the time frame.

a. How did you make the choices you did regarding non-rent expenditures?

b. How do your expenditures align with the financial goal you selected?

Answer: a. Food is an inevitable proportion. Food expenses are about 16% of the total expenses as the food is used for the family of six, one wife, and four children, and the food prices are increasing with time. Transport will also take a portion of the income as I will require to travel to work and take my children to school. I will also take my family upcountry and will have to fuel the vehicle. The amount is set in such a way that will offset the changing prices of oil prices. My family has four children who are currently going to school. Each child is estimated to use $1,250 in their academic year.

Education is very important and taking the children to the best school is my preference. That is why a tenth of my income goes towards educating my children. As for healthcare, my family will require an insurance cover that covers the health of my family and ensure that they receive the best medical care. Choosing an insurance cover that costs $2,000 is fairly reasonable as it has helped pay the medical bills that arise with time. Family care expenses are also included which carry a low percentage but are very helpful. The family undergoes counseling. There are miscellaneous expenses that are unavoidable. These expenses carry a portion that must be factored in.

Answer: b. The expenditures are symmetrical and can be consistent as I work on a ten-year plan of reducing my housing expenditure and having my home. The expenditure layout will help me focus on my goal and ensure that all incremental costs have been met.

4. Reflect on the productivity strategies you used to break down your financial plan into smaller steps to help you stay organized and productive.

a. How closely did you follow the plan you thought through earlier in the assignment instructions?

b. How did a step-by-step and organized approach help you to adjust your financial priorities and financial plan?

c. How did the approach you use to draw upon productivity strategies that you had previously learned?

Answer: a. The previous financial plan was followed to the letter. Various alternations had to be modified but they were insignificant.

Answer: b. Having an organized approach helps in ensuring that I will be consistent and become disciplined in terms of following the new plan. It is through consistency that I identified the order of preference of my expenses.

Answer: c. The previous approach allowed me to analyze my financial income and expenses. t

1