Personal Financial Planning-How to Manage Your Money

Personal Financial Planning-How to Manage Your Money

According to Billingsley et al. (2020), personal financial planning is essential in reaching financial objectives and selecting the right measures to achieve them. The article, How to Manage Your Money: 19 Tips to Do It Right by Sarah Sharkey discusses the strategies that a person can use to manage cash effectively. One of the key points from the article is that 37% of Americans get a loan, use credit cards, or ask someone they know to assist them in covering a financial crisis worth $1,000. The second key point is that the right bank account is vital in creating financial success because trying to manage finances without the proper bank account is like taking a car without the right parts. The third key point is that getting savings and checking accounts is vital to easily separate the cash a person is spending from their long-term savings. The fourth key point is that it is crucial to have a budgeting method to plan for the money a person uses in addition to their monthly expenses. The fifth key point is that it is important to set financial goals to stay motivated and focused on where a person wants to be financially. The author also argues that saving depends on a person’s risk tolerance, but it is important to plan for large expenses. Another key point is that it is vital to get ‘an accountability buddy’ to help keep a person’s financial goals on track. The accountability buddy should have the same financial goals to make it easier to check the progress toward achieving the financial goals monthly or weekly.

The new information I learned from the article is about having an accountability buddy to discuss financial goals and work together to achieve them. I will apply this new information to monitor the progress towards achieving my savings goals by finding a partner with similar ambitions and goals and requesting them to correct me whenever they notice that I am not using my funds appropriately. I have also learned that it is vital to set aside some money to donate so that I can make an impact where I want to. I will use this information to look for opportunities to provide financial assistance to the less fortunate in the community or people looking for donations to pay hospital bills. I will also use this information to mobilize my friends to assist me in making an impact on those in need in the community by donating food and essentials such as toiletries and clean water.

  References

Billingsley, R. S., Gitman, L. J., & Joehnk, M. D. (2020). Pfin7: Personal finance. Cengage Learning.

Sharkey, S. (2023, May 7). How to manage your money: 19 tips to do it right. Clever Girl Finance. https://www.clevergirlfinance.com/how-to-manage-your-money/

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23SP-MG105-44 – Personal Financial Management
Week 4 Assignment
Assignment Content
Using the internet, journals, or newspapers, research an article related to Managing Your Cash and Savings, and answer the critical thinking question that follows:

Summarize the key points from the article in terms of what you have learned regarding Managing Your Cash and Savings. In your summary, reflect on and explain, what new information you learned, and how you will apply this new information in a real-world context.
Your submission should be a minimum of one page in length. Please type the question and your answer. Cite any sources utilized in APA format.
Submission