Financial Planning Coursework Example | Topics and Well Written Essays - 10250 words

Financial Planning - Coursework ExampleI was able to programmet my pecuniary plan on this. Also I learnt to incorporate various influential factors into my pecuniary plan. On the overall, the chapter cans a framework for financial planning.The first chapter provides the method to derive the goal and the path to achieve the goal. This chapter provides the path of achieving such(prenominal) goal. In other words, it provides us with information on some of the basic tools required such as maintenance of financial records, computation of net worth, preparation of cash flow statement, using financial ratios, and understanding time value of money.The chapter lists out the benefits and various aspects of organizing the documents and records. The issues to be thought about are how ample to save a document and how to save it. The purpose of safe abide bying devices like safe deposit nook or lock box should be understood before investing in one of them.The two financial statements imp ortant for an individual are Balance winding-clothes and Cash Flow Statement. The Balance Sheet reveals the financial position of the individual and the Cash Flow Statement summarizes the cash inflows and outflows. Worksheets 1 and 7 provide the template for preparation of these two statements.Financial ratios such as the debt ratio and the savings ratio put a precise idea of your achievement. It informs you if your debts are well within the limits of the assets you own and the savings ratio keep your savings on track. Time Value of Money is essential to assess ones financial success. A ballpark man thinks that he has earned well on his investment without considering when he is going to get the returns. soul the concept of time value of money becomes essential to know if the returns to be earned over a period of time are actually sufficient. Chapter 3This chapter deals with identifying ones short term and long term financial goals, evaluating ones own abilities and interest in e stablishing a career plan, understanding and implementing a household budget, and monitoring and imperative expenses.The chapter first provides the precise steps required to establish a set of goals. It is important to list the goals on paper rather than just think about it. The step regarding breaking bigger goals into smaller goals was a good tip. While thinking in the long run, everything looks very vague, whereas in the short run, we are able to think precisely. In the short run, we will be able to execute our long term plan. public life planning, though not directly linked to financial planning, is the very source of the finance that we need to plan for. The chapter gives a detailed explanation on career planning. Through the chapter I was able to learn the accepted value of my career, which is the present value of it and not just what I am going to earn in the near future. There are also useful websites that give