Personal Finance Week 4 Assignment

Charron 2

PERSONAL FINANCE 2

PERSONAL FINANCE

Samantha Charron

Northern Vermont University

February 18, 2021

There are short term investments that will ensure that I have enough to spend and also enough to save to ensure that the future is secure. The first thing to do not only to reduce the expenses but also to plan ahead before spending. Impulse buying will be avoided at all cost. To avoid unforeseen purchases in future, everything shall be planned in advance. For instance, food will be bought in bulk so that it can last at least a month. Cooking at home is a great idea since making food is cheaper than readymade food in the hotels or restaurants.

In order to make the unanticipated expenses, there will be a budget for miscellaneous. Additionally, emergency kit will be also be set aside as well. Miscellaneous will ensure additional cost incurred due to increases prices or inflation are avoided. For instance, in every budget year, it is anticipated the cost of living is likely to increase by a significant margin. The cost of fuel usually increases and with the prices of almost every other product. Emergency kit will cater for anything else that was not budgeted but can hardly be done away with.

Stock exchange is a good many markets to ensure the short-term goals are reached. In the stock exchange, there are companies one can buy shares and other assets such petroleum, gold and other items to trade in the near future when the prices are better. This will certainly ensure constant stream of income. Additionally, a better bank that offers high interest rates for either current, saving or fixed account could be handy as well.

References

References

Bellon, A., Cookson, J. A., Gilje, E. P., & Heimer, R. Z. (2020). Personal wealth and self-employment (No. w27452). National Bureau of Economic Research.

Madura, J. (2017). Personal finance (6th ed.). Boston: Pearson.