Personal Finance
Personal Finance
Chris Cannard, Van Trinh, Jommel Esteybar,
Edward Sy, Cricket Williams, Trey Vogel
San Jose State University
Abstract
Many people assume that handling personal finances is straightforward and can be done with little to no preparation. This paper delves into the many different aspects of personal finance. It discusses the tools that we are learning in class and explains how these tools that can be used to save for retirement. It offers tips to improve your financial standing both now and in the future. And finally, it compares these tips with advice offered by an expert, Suze Orman. Everyone needs to learn how to properly prepare their finances to reach their goals. While doing so can be easy and rewarding, neglecting to do so can have a substantial negative impact on your future well-being.
Financial Decisions
The financial decisions that you make today will either assist or haunt you for many years to come. You need to treat your financial decisions as if you are running a business and remove your personal feelings from the decisions so that you can make clear, concise, and rational financial decisions. By using the tools that you have learned in your textbook thus far, you should be able to leverage the proper financial institution in meeting your investment goals. You should be able to construct a simplified Income Statement for proper financial analysis. You can use this information to create an Income to Debt ratio, which significantly impacts your credit score. You can calculate a true interest rate prior to making any long-term purchases. You should understand how long–term debts are amortized and how your payments effect the principal owed on these debts. And finally, you should understand the Time Value of Money so that you can properly assess the opportunities that you are confronted with (Brigham, 2007).
Critical to making any financial decision is separating the emotional side of a decision from the factual segment of the
Chris Cannard, Van Trinh, Jommel Esteybar,
Edward Sy, Cricket Williams, Trey Vogel
San Jose State University
Abstract
Many people assume that handling personal finances is straightforward and can be done with little to no preparation. This paper delves into the many different aspects of personal finance. It discusses the tools that we are learning in class and explains how these tools that can be used to save for retirement. It offers tips to improve your financial standing both now and in the future. And finally, it compares these tips with advice offered by an expert, Suze Orman. Everyone needs to learn how to properly prepare their finances to reach their goals. While doing so can be easy and rewarding, neglecting to do so can have a substantial negative impact on your future well-being.
Financial Decisions
The financial decisions that you make today will either assist or haunt you for many years to come. You need to treat your financial decisions as if you are running a business and remove your personal feelings from the decisions so that you can make clear, concise, and rational financial decisions. By using the tools that you have learned in your textbook thus far, you should be able to leverage the proper financial institution in meeting your investment goals. You should be able to construct a simplified Income Statement for proper financial analysis. You can use this information to create an Income to Debt ratio, which significantly impacts your credit score. You can calculate a true interest rate prior to making any long-term purchases. You should understand how long–term debts are amortized and how your payments effect the principal owed on these debts. And finally, you should understand the Time Value of Money so that you can properly assess the opportunities that you are confronted with (Brigham, 2007).
Critical to making any financial decision is separating the emotional side of a decision from the factual segment of the
References: Anonymous. (2010a). Advantages to a 401k plan. 401K-Center. Retrieved from http://www.401k-center.com/401k-advantages.html Anonymous Anonymous. (2010c). Roth ira rules. RothIRA.com. Retrieved from http://www.rothira.com/learn/rules.php Anonymous Brigham, & Houston. (2007). Funamentals of Financial Management (Concise 5 e). Mason, Ohio: South-Western division of Thomson Learning. Department of Treasury Department of Treasury. (2010a). Iras. IRS.gov. Retrieved from http://www.irs.gov/publications/p590/ch02.html Department of Treasury Department of Treasury. (2010c). Faqs about iras. IRA.gov. Retrieved from http://www.ira.com/faq/faq-02.htm Hansen, S.W Orman, S. (2008). Suze orman 's 10 tips for a fresh financial start. Oprah.com. Retrieved from http://www.oprah.com/money/Suze-Ormans-10-Tips-for-a-Fresh-Financial-Start/1 Pritchard, J