Touchstone 2: Creating a Personal Financial Plan

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 modify your living arrangements, or something else. In addition to searching for different housing, you want to begin saving for a specific financial goal. You will use the Assignment Template (an Excel file) to create a budget that satisfies the scenario. Youll also answer reflection questions related to your goals. ASSIGNMENT: This assignment has two parts. In part 1, you will create a financial plan based on the scenario described above. Youll use your productivity skills to organize your plan, and youll use your problem solving skills to determine a reasonable rate of savings to reach your goals. Finally, youll apply your technology skills to ensure that your budget is balanced, and expenditures (like housing) dont exceed your employment income. In part 2, you will answer reflection questions about the decisions you made and the skills you leveraged while building your plan. For this assignment, you will:

• Create a budget for a financial plan using Microsoft Excel, ensuring that the information is organized, accurate, and complete.
• Identify a personal savings goal and a time frame for reaching it.
• Explain how your choice of housing will help you achieve your personal savings goal.
• Align your expenditures to support your goal.
• Reflect on how creating a step-by-step and organized approach to the assignment helps you adjust the financial priorities in your plan.

Download the Excel template below, which further breaks down the steps involved in this assignment. You will return the completed template as your Touchstone submission. Assignment Template In order to foster learning and growth, all work you submit must be newly written specifically for this course. Any recycled work will be sent back with a 0, and you will be given one attempt to redo the Touchstone.

A. Assignment Guidelines

DIRECTIONS: Refer to the lists below throughout the writing process. Do not submit your Touchstone until it meets these guidelines.

1. Creating a Financial Plan

Have you populated the table cells for income, savings, housing, and other expenditures?

Have you selected a rate of savings that is realistic in terms of achieving your financial goal?

Have you verified that the sum of your expenditures (including savings) equals your employment income?

Have you verified that the percent column for the expenditures totals 100%?

2. Reflection Questions

Have you directly answered each question that was asked?

Have you provided sufficient evidence to support each of your answers?

Have you made clear and logical connections between your conclusions and the data used in the annual budget?

Have you referred to the skills in this course, if required by the prompt?

Have you included sufficient detail in your answers?

KI 1: CKEAIING A PEKSUNAL rINANCIAL PLAN 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 modify your iving arrangements, or something else. In addition to searching for different housing, you want to begin saving for a specific financial goal. STEP 1: Think about the productivity strategies you've learned in this course. Make a mental plan for how you will break down creating your inancial plan into smaller steps. Think about ways you can stay organized and be productive. With your ideas in mind, move on to step 2. STEP 2: Choose an annual income as a starting point for your financial plan and insert the value in the ANNUAL BUDGET above. Select from he following: - Use the provided annual income of $50,000. - Use your current annual income. - Use the average (or median) income of a career that you're interested in. Consider doing a quick online search. TEP 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 than 2 years). 'ou'll use this value in step 4 . Select from the following: Create an emergency fund of $1,000. Save for a vacation that will cost $2,000. Save to buy a $15,000 vehicle. Save for a down payment of $40,000 to buy a house. Save $50,000 for education for you, a spouse, or a child. TEP 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 equired rate of savings: To understand your savings rate (\$ per year), divide your financial goal by the number of years you plan to save for it. Enter the result in the Savings cell of the ANNUAL BUDGET. Briefly describe your overall savings goal and the time to achieve it next to the ANNUAL BUDGET in the space provided. TEP 5: Choose a housing cost (rent or mortgage) and enter the amount in the Housing cell of the ANNUAL BUDGET. Select from the ollowing: Pay an annual mortgage of $15,000 per year. Rent an apartment for $12,000 per year. Rent a room only for $9,000 per year. Use your current annual rent or mortgage. TEP 6: Fill in the other expenditure amounts in the ANNUAL BUDGET according to your preferences. Do some online research, if necessary or this exercise, be sure to use all the income that you designated ( $50,000 or otherwise). Look ahead to step 7 to see how you can use ormulas to help you balance your budget as you work. TEP 7: Your ANNUAL BUDGET may or may not be balanced. To check, do the following: Enter a formula to calculate 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