PART 1: CREATING A PERSONAL FINANCIAL PLAN PART 2: REFLECTION QUESTIONS SCENARIO: Imagine that you are in a position where you need to move-this could be because of a change in job, a need to QUESTION 1. In step 4, you selected a time frame to Your Answer (75 words or less): modify your living arrangements, or something else. In addition to searching for different housing, you want to begin saving for achieve your savings goal. How can you tell that the a specific financial goal. me you chose is realistic? Explain. STEP 1: Think about the productivity strategies you've learned in this course. Make a mental plan for how you will break down QUESTION 2. In step 5, you selected a housing option. Your Answer (75 words or less): creating your financial plan into smaller steps. Think about ways you can stay organized and be productive. With your ideas in Explain the reasons for your housing choice in terms of mind, move on to step 2. the following: . The time frame needed to achieve your savings goal . Your family's anticipated living arrangements . Your desired quality of life . Any trade-off decisions . Other + STEP 2: Choose an annual income as a starting point for your financial plan and value in the ANNUAL BUDGET above. QUESTION 3. In step 6, you entered more annual Your Answer (75 words or less): Select from the following: expenditures into the budget. . Use the provided annual income of $50,000. A. What process did you use to make those choices? Be your current annual income. B. How do your expenditures align with the financial Use the average (or median) income of a career that you're interested in. Consider doing a quick online search. goal you selected? STEP 3: Choose a financial goal you would like to save for. It can be a short-term goal (1 to 2 years) or a long-term goal (more QUESTION 4. In step 1, you thought about productivity Your Answer (150 words or less): than 2 years). You'll use this value in step 4. Select from the following: strategies that you might use to break your annual . Create an emergency fund of $1,000. budget into smaller steps for staying organized and a vacation that will cost $2,000 productive. Save to buy a . Save for a down payment of $40,000 to buy a house. for education for you, a spouse, or a child. A. How closely did you follow the plan that you . Save $50,000 for education thought about? B. How does a step-by-step and organized approach help you adjust priorities in a financial plan? C. How did creating the annual budget draw from productivity strategies that you learned in this course? STEP 4: Now set a realistic time frame (in years) for reaching the goal in step 3. The recommended range is one to 10 years. This will yield a required rate of savings: ANNUAL BUDGET Note: . To understand your savings rate ($ per year), divide your financial goal by the number of years you plan to save for it. Amount ercent To increase the height of a row, hover over the bottom border of Enter the result in the Savings cell of the ANNUAL BUDGET. ncome $50,000 100% that row in the far left margin until your cursor becomes and up - Briefly describe your overall savings goal and the time to achieve it next to the ANNUAL BUDGET in the space provided. Expenditure down arrow. Then click and drag the bottom border to the Housing desired row height. If you make an error, you can use the STEP 5: Choose a housing cost (rent or mortgage) and enter the amount in the Housing cell of the ANNUAL BUDGET. Select from Food he following: Transportation Pay an annual mortgage of $15,000 per year. Education Rent an apartment for $12,000 per year. Rent a room only for $9,000 per year. Utilities Taxes Use your current annual rent or mortgage Health Care Family Care STEP 6: Fill in the other expenditure amounts in the ANNUAL BUDGET according to your preferences. Do some online research, it Miscellaneous necessary. For this exercise, be sure to use all the income that you designated ($50,000 or otherwise). Look ahead to step 7 to Savings avings Goal see how you can use formulas to help you balance your budget as you work. Total STEP 7: Your ANNUAL BUDGET may or may not be balanced. To check, do the following: Enter a formula to calculate your com alculate your total expenditures. Adjust your expenditures until the total equals your annual income Next, enter formulas in the percent column to calculate each expenditure as a percentage of the total expenditure. Finally, using your ANNUAL BUDGET as a reference, complete the REFLECTION QUESTIONS on the right side of this spreadsheet