Overview: This milestone requires you to begin establishing a personal financial plan, reflecting your learning to date in the course. Now that you have an appreciation for developing long-term as well as short-term financial goals, you will be able to plan appropriately and make adjustments to reflect your intentions as well as outline steps to make necessary changes.

In this milestone, you will develop and calculate a personal financial plan, an income statement, a balance sheet, and a budget. This milestone will be submitted in Module Three. In this milestone, complete the worksheets listed below (which accompany your textbook)

Worksheet 1: Personal Financial Goals Worksheet Within this spreadsheet, you will have the opportunity to prioritize and organize your goals and expectations. Note that the establishment of an emergency fund and the elimination of credit card debt are listed as potential considerations. Refer not only to Chapters 1 and 2, but also Chapters 5 and 6 and contemplate how you might prioritize use of your resources. Complete this spreadsheet and use it as the basis for your plan.

Worksheet 2: Financial Objectives Worksheet Within this spreadsheet (located in a Word document), you will have the opportunity to document personal financial objectives, specifically those that are longer term plans. Noting the relevancy to most individuals long-term plans, this document allows one to consider not only present but future anticipated requirements of resources for education, family, health, and retirement needs. Complete this comprehensive list and consider any relevant planning requirements that you will need to initiate today.

Worksheet 4: Balance Sheet Worksheet Within this spreadsheet, you will document your net worth by completing the required elements of a personal balance sheet. You may refer back to Chapter 2 of your textbook for a model that mirrors this document. Include your assets, liabilities, and assess your equity position. Complete this file and consider the necessity for change in various areas. There are two tabs, so be sure to complete both tabs. (Hint: In the future you will be revising your plan according to anticipated changes that you have identified in Worksheet 2 or in future weeks when we consider the impact of home ownership and other major financial decisions.)

Worksheet 5: Simplified Income Statement Worksheet Within this spreadsheet, you will document the distribution of your take-home pay by completing the required elements of a personal income statement. You may refer back to Chapter 2 of your textbook for a model that mirrors this document. Include your assets, liabilities, and assess your equity position. Complete this file, and consider the necessity for change in various areas. (Hint: In the future you will be revising your plan according to anticipated changes that you have identified in Worksheet 2 or in future weeks when we consider the impact of homeownership and other major financial decisions.)

WORKSHEET 1 - PERSONAL FINANCIAL GOALS WORKSHEET Make sure your goals are realistic and stated in specific, measurable terms. In addition, prioritize your goals and identify a specific time frame within which you would like to accomplish them. The listing below is not meant to be all-inclusive, but merely to provide a framework within which goals can be formalized. Intermediate-Term Goals (1 to 10 years) Save funds for college for an older child Save for a major home improvement Save for a down payment on a house Pay off outstanding major debt Finance very large items (weddings) Purchase a vacation home or time-share unit Finance a major vacation (overseas) Other intermediate-term goals (specify) Long-Term Goals (greater than 10 years) Save funds for college for a young child Purchase a second home for retirement Create a retirement fund large enough to supplement your pension so that you can live at your current standard Take care of your parents after they retire Start your own business Other long-term goals (specify) he generic objectives provided are typical for people of all ages and are geared to assist you ith your goal setting. Please rank the objectives on the following scale. \begin{tabular}{|l|l|l|l|l|l|l|} \hline Purchasing a home & & & & & & \\ \hline Caring for parents & & & & & & \\ \hline Investing an inheritance & & & & & & \\ \hline Saving for retirement & & & & & & \\ \hline Retiring early & & & & & & \\ \hline Traveling extensively in retirement & & & & & & \\ \hline Giving to charity & & & & & & \\ \hline Transferring estate assets & & & & & & \\ \hline Other: & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} W3 worksheet Balance Sheet - Calculating Your Net Worth C. Retirement Plans C. =$0 Primary Residence 2nd Home Time-Shares/Condominiums Other Housing D. Housing (market value) Automobile 1 Automobile 2 Other Automobiles E. Automobiles E. = \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \end{tabular} Collectibles Boats Furniture Other Personal Property F. Personal Property F.=$ Money Owed You Market Value of Your Business Other G. Other Assets G. = \begin{tabular}{|l|} \hline \\ \hline \end{tabular} + + H. Total Assets (add lines A through G) H. = \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \end{tabular} W 3 worksheet Balance Sheet - Calculating Your Net Worth (continued) Worksheet 5 - Simplified Income Statement Worksheet L. Total Living Expenditures (add lines D through K ) =L. Total Available for Savings and Investment After-Tax Income Available for Living Expenditures C. or Take-Home Pay C. L. Total Living Expenditures - L. M. Income Available for Savings and Investment (line C minus line L ) =M. WORKSHEET 1 - PERSONAL FINANCIAL GOALS WORKSHEET Make sure your goals are realistic and stated in specific, measurable terms. In addition, prioritize your goals and identify a specific time frame within which you would like to accomplish them. The listing below is not meant to be all-inclusive, but merely to provide a framework within which goals can be formalized. Intermediate-Term Goals (1 to 10 years) Save funds for college for an older child Save for a major home improvement Save for a down payment on a house Pay off outstanding major debt Finance very large items (weddings) Purchase a vacation home or time-share unit Finance a major vacation (overseas) Other intermediate-term goals (specify) Long-Term Goals (greater than 10 years) Save funds for college for a young child Purchase a second home for retirement Create a retirement fund large enough to supplement your pension so that you can live at your current standard Take care of your parents after they retire Start your own business Other long-term goals (specify) he generic objectives provided are typical for people of all ages and are geared to assist you ith your goal setting. Please rank the objectives on the following scale. \begin{tabular}{|l|l|l|l|l|l|l|} \hline Purchasing a home & & & & & & \\ \hline Caring for parents & & & & & & \\ \hline Investing an inheritance & & & & & & \\ \hline Saving for retirement & & & & & & \\ \hline Retiring early & & & & & & \\ \hline Traveling extensively in retirement & & & & & & \\ \hline Giving to charity & & & & & & \\ \hline Transferring estate assets & & & & & & \\ \hline Other: & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} W3 worksheet Balance Sheet - Calculating Your Net Worth C. Retirement Plans C. =$0 Primary Residence 2nd Home Time-Shares/Condominiums Other Housing D. Housing (market value) Automobile 1 Automobile 2 Other Automobiles E. Automobiles E. = \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \end{tabular} Collectibles Boats Furniture Other Personal Property F. Personal Property F.=$ Money Owed You Market Value of Your Business Other G. Other Assets G. = \begin{tabular}{|l|} \hline \\ \hline \end{tabular} + + H. Total Assets (add lines A through G) H. = \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \end{tabular} W 3 worksheet Balance Sheet - Calculating Your Net Worth (continued) Worksheet 5 - Simplified Income Statement Worksheet L. Total Living Expenditures (add lines D through K ) =L. Total Available for Savings and Investment After-Tax Income Available for Living Expenditures C. or Take-Home Pay C. L. Total Living Expenditures - L. M. Income Available for Savings and Investment (line C minus line L ) =M