University:
California State University, Northridge
Course:
FIN 302 | Personal Finance
Academic year:

2024
Views:

423

Pages:

2
Author:

5prinzg1s

Personal Finance Project Part 1 1. Am I living within my means? Does my income cover my expenses? Do I have enough income to pay my bills? If I pay all of my bills and expenses, I am able to save 36% of my monthly income. 64% of my monthly income is used to pay my expenses each month and I do believe that it is enough to cover all of my expenses and pay my bills each month comfortably. I even budgeted an entertainment expense of 100 dollars a month. 2. Am I financially independent from my family? With my monthly income being $4000, I can be financially independent from my family, and I will be able to cover all of my expenses comfortably. With my income, I am able to save as well. 3. Do I have an emergency fund? I do have an emergency fund. With this budget I have created, I am moving $200 a month into that fund. If anything were to happen, I believe that this fund will be sufficient enough to handle any issue. 4. Am I saving enough for retirement in my budgets/planning? I am saving enough for my retirement. I am creating this budget without a 401k but I am setting aside $200 a month for my retirement fund. If there is a 401k plan with my job, I could still set aside more money for my retirement. 5. Do I have enough to start giving financially to others? I believe I could help out others financially. I am not sure how much I could contribute or where I would give that money to, but I like to help out and I could donate money to local charities. Part 2 1. How will you save for your future? What types of investment products could help you reach your goals? How will you/do you research investment opportunities? There are many ways to save for my future. With saving for the long term, there are products such as a 401k through my place of work. I could contribute 5% of my paycheck towards that fund, and usually workplaces match up to a certain percent as well, to help you save quicker. Short term savings includes CDs, which are usually at lower rates, especially now since the pandemic started. The savings rates have dropped significantly since 2019, but every little bit of interest helps out. I have worked at a credit union before so I was able to learn about savings opportunities, but I could also research on how to trade stocks to save/invest my money to make a profit. 2. In the future, how will you manage your credit? How will you determine when/how to borrow? In the future, I will do my best to manage my credit as best as I can. Having experience at a credit union, I was able to learn a lot about credit and what things affect your credit. I will try to keep borrowing down, especially with credit cards. Having credit cards is a great way to build and maintain good credit, as long as your balance is under 30% of the limit. I will try not to borrow often, but it is inevitable when you want to make a big purchase such as a car or a house. But I will try to keep the rate as low as possible and always make my payments on time. Paying a little extra each month will help bring the balances down as quick as possible too.

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