Personal Budget Reflection

Personal Budget Reflection

What I have learned

I have learned that some expenses in a proposed budget are fixed. It is essential to have a forecast to determine the units to be included in the budget. There are other strategies to determine which units will have more outstanding outcomes. Flexible budgeting is a reversed plan that will be created at the end of the month since there are changes that will take place in the revenue and expenses (Bhandari, 2012). Having a flexible budget is key in anticipation of an influx in the patient population. There will be effects on the cost, time for overtime, and the previous budget. Our assignment writing services will allow you to attend to more important tasks as our experts handle your task.

The Unexpected

I did not expect the PMT to be negative. The payments for the investment are supposed to be made every month. That implies that the annual interest rate will be covered by the monthly rate. The argument is set such that the payments will be made at the start of each period. The available cash flow conversion is represented with negative numbers, and the incoming payments will be shown by positive figures. That implies that I will be allocating more income towards the investment that I will be generating. I did not expect that to happen since it implies the amount will not last for 25 years after retirement.

Changes

One of the changes that I will make is reducing take away and cutting on the outdoor activities. The main aim of making the change is to increase the amount that I will save at the end of the month and on an annual basis. An increase in savings implies that I will invest more, and the future value will equally increase. The change will make it possible to increase the amount of money I will spend in a single day after I reach retirement age.

Plan for Investment

One of the current plans is to liquidate some of my assets and invest in stocks and bonds. The need is essential as it will make it easy to make payments for short-term debt. Also, meeting the needs will make it easy to meet the demands in the future. Also, there is a need to work on my cash flow in the investment plan. The cash flow statement provides details of the receipts and payment of cash for the investment period. They show the link between the cash balance and the start of the accounting period to the balance sheet of my expenses and investments.

Benefits for Budgeting

Several benefits are associated with budgeting. One of the advantages is the effective management of finances. Budgeting makes it possible to know the amount earned and how it has been allocated to the different expenses (Kierulff, 2010). Another benefit is the potential to monitor the level of performance. If the plan is to save, then budgeting makes it possible to know the changes that need to be done and adjust.

Changes to be made as a result of the Assignment

A fundamental change will be in the strategies for the creation of the budget. Strategies entail the plan for actions vital in achieving and implementing the general success in a budget (Finkler, Jones & Kovner, 2013). Some of the strategies that will effectively improve budget development include forecasting, communication, the use of proformas, and keen management of the scope of the healthcare facility’s practices.

Entities		Budget	Actual		PV	I/Y	N	PMT	FV	N
Monthly Salary		$9,000	$9,000			6%	35			25
Expenses
Household Expenses	Mortgage	$2,000	$2,000		$3,762			($259.48)	3762
	Grocery	700	680
	Vegetables	$400	$360
	Fruits	$250	$242
	Takeaways	$375	$250
	Rent	$0	$0
	Electricity	$160	$155
	Cable	$50	$50
	Internet	$25	$25
Transportation					$678			($259.48)	1356
	Car EMI	$400	$400
	Petrol	$80	$83
	Servicing	$30	$30
	Gas	$45	$45
	Toll/Parking	$120	$120
Entertainment
	Movies	$70	$80		$180			($12.42)	360
	Outdoor activities	$100	$100
Health					$185			($12.76)	370
	Health Insurance	$90	$90
	Preventive Check Up	$85	$85
	Vaccinations	$10	$10
Education					$600			($41.38)	1200
	Kid’s School Fees	$400	$400				Total	($585.52)	7048
	Tution Fees	$200	$200
Total Expenses		$5,590	$5,405
Total Savings		$3,410	$3,595
Total Savings per Year		$    40,920	$      43,140

References

Bhandari, S. (2012). Discounted Payback Period – A Viable Complement to Net Present Value for Projects with Conventional Cash Flows. The Journal of Cost Analysis, 7(1).

Finkler, S., Jones, C., Kovner, C. (2013). Financial Management for Nurse Managers and Executives, 4th Edition. [Bookshelf Online]. Retrieved from https://online.vitalsource.com/#/books/978-1-4557-0088-2/

Kierulff, H. (2010). MIRR: A Better Measure. Business Horizons, 51(4), 321-329.

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A personal Budget project will require you to examine cash inflows and outflows as well as develop a retirement plan for your household.  Each section provides clear direction.

You are to submit both a written paper and an Excel model to support your findings.  You are not required to repeat Excel calculations in the paper but rather use it as a reference in the paper.  The format is important.  Excel models need to be well thought out and have appropriate details for the reader to understand independently of the written paper.

1. Personal Budget

You need to develop a personal budget. Try to be as realistic as possible. If you are going to school and not working, then do some research to find out what salary you will be making when you graduate. If you are working full-time, you can use your income now or an estimated amount, assuming you will be making more money when you graduate.

For Example:

Budget        Actual

Gross Monthly Pay                                          1000

Total est. deductions

Net Pay                                                                 750

Rent/Mortgage

Utility – Electric

Utility – Gas

Utility – Water

Cable/Internet

Phone/Cell

.Total Expense

Total savings

Take your total savings and multiply by 12 for 12 months.  This is your estimated saving (payment) per year. (If you want to do a more elaborate budget you can).

To make this budget useful, do this in Excel so you can actually use it.

Note: You can do your budget however you want as long as it is clear and understandable to the reader (me) and you.

2. Analysis:

Using as many timelines as you need, forecast all your projected savings (investments) to get each investment’s future value.  You will have to determine your PV, I/y, N, PMT then calc. FV

If you don’t have any idea on the I/y, you could use 5 or 6% to be conservative.  N depends on your current age and when you think you will retire.

Savings

401k or (403B) whichever you use

IRA’s….

Home    Etc…….

Once you add up all the future values from step 2 above, and do a time line to determine how much you will be able to spend each year assuming you are going to spend all your money. I.e. your future value will be 0.   To calculate N, you have to make a lot of assumptions. For example, if you are planning on retiring at age 65 and think (hope) you will life until you are 90 (25 years) your N will be 25.

3. Reflection

Once you are completed with the sections above write a page or two on what you learned from this project. This is open-ended but I expect at a minimum of 1 page as a write-up.  Reflection could include but is not limited to the following questions:

What did you learn?

Was there anything unexpected?

What changes will you be making as a result?

How do you plan on investing their funds – why? How often will you review the Plan?

What benefits are there to budgeting?

What specific changes will you make as a result of this assignment?

Please note: APA formatting is required for all outside sources.