Assignment: Personal Finance: Alice Goals

Personal Finance: Alice Goals
Complete the Assignment: Personal Finance by Rachel Siegel and Carol Yacht (2009); Page 23. Exercise 2. See below: “Use the S.M.A.R.T. planning model and information in this section to evaluate Alice’s goals (below). a. pay off student loan b. buy a house and save for children’s education c. accumulate assets d. retire e. travel around the world in a sailboat. Discuss your evaluations" (p.23). Prepare a two page (double-spaced) essay. Cite references to material that you use in preparing the essay.
Whenever we decide to begin a process of a Financial Plan, we must first of all figure out exactly where we are presently, where we want to be and most important how to get there. Therefore we must make a plan as to

Based on SMART, this goal will be, “To buy a house enough for four people in ten years’ time and also be able to save a minimum of $20 weekly for my children’s education by when my first child is born” (Specific). This goal specifically states by when Alice wishes to purchase a house and even, more or less, the size of house she desires. Alice will also be saving a specific amount of money for her children’s education which will start doing as soon as she has her first child (Measurable). Alice must be able to clearly analyze her capabilities again to being able to save enough for buying a house in ten years or to be ready enough to get in debt and start paying a mortgage loan (Attainable). She needs to assess her resources including what career or job she needs to make enough money to be able to save for a house. She needs to consider how much money she can possible save to reach her goal and for her children’s education. She needs to consider if studying for another degree help her to achieve her goal faster or will that be too much risk (Realistic). Alice is setting a ten year deadline for her goal and also setting that when she has her first child she will be able to save $20 weekly for the baby’s education

As is this goal is very unclear and not specific. For it to be useful we need to set a clear objective for Alice. “To own a house and land property, a vehicle of the year, and have at least 10,000 dollars on savings account, in 15 years from now (Specific). The above goal is now very specific and can be measured if it was completed or not (Measurable). Alice must analyze and assed her present situation. Whatever debts must be clear as soon as possible for her to be able to work towards achieving her goal (Attainable). For the goal to be realistic, Alice must know the resources she has available, the resources she need that can help her achieve her goals, a clear method for accomplishing this goal but also be aware of the potential barriers that can delay of can cancel her goals