Personal Financial Planning

Personal Financial Planning
Financial planning is a branch of financial management that deals with the analysis of the cash flow management. The analysis entails a careful outlook of the cash inflows sources and cash outflows movement. There is the calculation of the various financial ratios such as profitability and gearing ratios. Budgeting is an essential tool in financial planning as it gives an outlay of the future requirements. It is also through budgeting that financial control is achieved. Resources are scarce, and that is why financial planning is an essential tool of financial management.
Risk management is a critical area of concern in the process of financial planning. All risks require to be analyzed fully and a clear report issued. The risk may vary from inherent to financial one depending on the locality and industry. In analyzing all the available alternatives, the paper gives the recommendations.
Short and long term goals situational analysis
The student is considering buying a car in the short term which is a liability. It will not be advisable for this decision to be undertaken, but in the long term it will be reasonable. This is because of the financial stability and work schedule (Gitman, 2013). A branch manager is someone with a vast experience in the field of their expertise. The student, therefore, considering working as a branch manager at an early age of the career will not be a reasonable decision. In the long term when the student gain the proper work experience may apply for the position of a branch manager.
Family is the unit comprising of two married people and children. It will be advisable for the student to have a family in the future when the financial stability will be guaranteed. Taking a holiday to the mainland should also come as a long term goal and not a short term one. The level of risk analysis by the student should be comprehensive of all the factors prevailing (Gitman, 2013). The income level of the student should not be less than $ 10,000 for the financial goals to be easily achieved.
Action plan
Financial planning requires discipline and, therefore, for the student to achieve the stated goals, a lot of discipline will be required. Proper action plan should be implemented for the realization of the goals. The student should increase the level of savings and lower the expenditure level (Gitman, 2013). The student should be engage only in healthy lifestyle activities other than indulging in luxury. It is also paramount to carry out an in depth risk analysis program and weigh out all the available alternatives.
In analyzing all the available alternatives, the paper gives the recommendations. There are also the viewpoints of the various professionals. For the career counselor, the advice would be to put more effort in activities that enrich one`s career. There will also be the idea of career path and advancement for the student to realize the goals. The investment broker will expose all the available alternatives for investment so as to raise the income levels. This would entail the analysis of the expenditure trends of the student and measures to lower them. The insurance agent will provide a clear outlay of the future insurance plans available and the benefit of each. The financial advisor will take the mantle of offering the comprehensive financial advice including all matters of taxation.
Gitman, L. J., Joehnk, M. D., & Billingsley, R. S. (2013). Personal financial planning. Mason, OH: South-Western Cengage Learning.

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