The paper 'Personal Financial Incentives' is a great example of a Finance and Accounting Assignment. Success is usually determined by setting targets to achieve. To attain the set goals, there is a need to formulate a plan. Planning enables one to know the activities to undertake regularly to attain the set targets (SE Regenbogen, CM Veenstra, 2015). Personal financial goals are also goals set to achieve certain financial objectives. Most of the financial goals set are considered to be long term. Personal financial goals may include purchasing a new car, buying a bungalow, or even paying student loans acquired.
A personal financial plan sheet assists one in achieving the set personal goals for a specific period (A. Drexler, G Fisher, 2014). This report will analyze a continuing case of Vikki and Treble by application of the personal financial plan sheet in attaining their set personal financial goals. Case One (chapter one, page 27) Personal Financial Data In this case, Vikki Rocco has just graduated from college and she is not that financially stable. She has both short and long term personal financial goals to achieve.
She has also decided to pay a rent of $200 per month until she is out in a year’ s time. First, she needs to create a directory of her personal financial information by filling the personal financial datasheet. She needs to understand her dependants in this case her parents (Dave and Amy aged 47 and 45 respectively). She can also contact any financial planning experts like for instance a banker for financial planning aid. She will also need to talk about the major priorities concerning finances in the household with her parents.
For this matter, she signs a contract with the parents to pay the house rent. Setting Personal Financial Goals Vikki has to set her financial goals to identify the goals to create a day-to-day action plan in their execution. She has to determine the specific goals while basing on personal and household needs and wants. In this case, her personal needs are to begin to pay her existing student loan and also her credit card debt amounting to a staggering figure of $2000. Payment of the house rent is necessary, and Vikki volunteered to pay it.
She has also decided to start investing in her retirement. She will have to identify both her short-term and long-term monetary goals. For instance, in this case, her short-monetary goals are to pay-off her credit card debt and also to pay the household’ s family rent. Her long-term monetary goals include payment of her student loan and also paying for her retirement benefits scheme. She will have to formulate the amount required to undertake the set goals. She has to accomplish the set financial goals depending on their priorities given.
Calculation of her savings will be necessary to attain her set financial goals. She needs to put into consideration economic trends that may affect her spending and saving for the future. The use of Time Value of Money to Attain the set Financial Goals
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