Personal Money Management
RESEARCH PAPER
PRINCIPLE OF ECONOMICS, LAND REFORM
ECON103 (TIME: 10:00 – 11:00 A.M.)
PERSONAL MONEY MANAGEMENT
Submitted by:
Daryl Roa
Submitted to:
Mr. Nico Del Valle
I. Introduction: The idea of management implies that you have a goal or a set of goals in mind. Therefore, the first and most important part of money management is to clarify your own goals, commit to them and write them down. Why do you need money? What will you use your money for? How much do you need? For what? For When? Be specific and realistic. Different people have different needs and different wants. Prioritize your needs. Some wants and needs will have a higher priority than others. Make your priorities clear and allocate sufficient funds to each according to the importance you give it. Avoid inconsistencies. IE: If retirement is more important to you than owning a house, then more savings should be diverted to retirement than to housing. And, if funds are scarce, then you should fund your retirement savings before funding your housing savings. Unfortunately, there will be times when you simply cannot fund all of your wants and needs. Having a priority list will help you decide where to allocate your limited resources. Your priority list should be time-sensitive. For instance, college tuition may come before retirement in chronological order. So, you have to have completely funded the tuition before you have completely funded the retirement.
II. RRL - Review of Related Literature Here are some case situations and the amounts of money needed to fund them:
Case study
| [pi|Goals (Wants and needs) [pic] |Total required [pic] |Monthly savings required* [pic] |Time to target amount [pic] |
|c] | | | | |
|1 |House |200,000 php |900 php |19 years
PRINCIPLE OF ECONOMICS, LAND REFORM
ECON103 (TIME: 10:00 – 11:00 A.M.)
PERSONAL MONEY MANAGEMENT
Submitted by:
Daryl Roa
Submitted to:
Mr. Nico Del Valle
I. Introduction: The idea of management implies that you have a goal or a set of goals in mind. Therefore, the first and most important part of money management is to clarify your own goals, commit to them and write them down. Why do you need money? What will you use your money for? How much do you need? For what? For When? Be specific and realistic. Different people have different needs and different wants. Prioritize your needs. Some wants and needs will have a higher priority than others. Make your priorities clear and allocate sufficient funds to each according to the importance you give it. Avoid inconsistencies. IE: If retirement is more important to you than owning a house, then more savings should be diverted to retirement than to housing. And, if funds are scarce, then you should fund your retirement savings before funding your housing savings. Unfortunately, there will be times when you simply cannot fund all of your wants and needs. Having a priority list will help you decide where to allocate your limited resources. Your priority list should be time-sensitive. For instance, college tuition may come before retirement in chronological order. So, you have to have completely funded the tuition before you have completely funded the retirement.
II. RRL - Review of Related Literature Here are some case situations and the amounts of money needed to fund them:
Case study
| [pi|Goals (Wants and needs) [pic] |Total required [pic] |Monthly savings required* [pic] |Time to target amount [pic] |
|c] | | | | |
|1 |House |200,000 php |900 php |19 years
References: Berg, JE, Forsythe, R, Nelson, F, & Rietz, TA (2000) Results from a dozen years of election futures markets research. Technical Report, University of Iowa. Chen, KY, Plott, CR (2002) Information Aggregation Mechanisms: Concept, design, and implementation for a sales forecasting problem. Lee Center Workshop. Fisher, RA (1966) Design of Experiments, 8th edn, New York: Hafner (Macmillan). Hanson, R, (1999) Decision Markets. IEEE Intelligent Systems, 14(3):16–19. Kiviat, B (2004) The End of Management? TIME, Inside Business, July 12, 2004. Noreen, EW (1989) Computer-Intensive Methods for Testing Hypotheses: An Introduction, New York: Wiley. Pennock, DM, Lawrence, S, Giles, CL, & Nielsen, FA (2001a) The real power of artificial markets. Science, 291 (5506): 987-988. Pennock, DM, Lawrence, S., Nielsen, FA, & Giles, CL (2001b) Extracting collective probabilistic forecasts from web games. Proceedings of the 7th ACM SIGKDD International Conference on Knowledge Discovery and Data Mining, pp. 174–183. Pethokoukis, J (2004) All seeing all knowing. US News & World Report, August 22, 2004. Plott, CR & Sunder, S (1988) Rational expectations and the aggregation of diverse information in laboratory security markets. Econometrica, 56(5):1085–1118. Roll, R (1984) Orange juice and weather. American Economic Review, 74(5): 861–880. Winkler, RL & Murphy, AH (1968) Good probability assessors. Journal of Applied Meteorology, 7:751–758. Wolfers, J, Leigh, A, Zitzewitz, E (2003) What do financial markets think of war in Iraq? NBER Working Paper 9587