Personal Finance Needs and Planning
Financial management and planning are aspects of every individual life, especially if one wants a comfortable life. When managing personal finances, individuals should be cautious of the most current and future financial needs and create budgets or even certain investments plans to help assure and support a promised future (Lusardi,2019). My current financial needs would be car, food, and clothing, phone bill. For monthly rent, which already includes utilities, the budget set is $2000. Which will cover food, transportation, and clothing. 2000 per month is budgeted. Additionally, I set aside $1500 each month for emergency savings.
Visualizing for the future is significant to make sure you have support if things may fail to turn out as anticipated. In 10 years, I will visualize being higher in my social media career and owning my own business and being successful. I aim to go from living with family members to renting a home with a monthly payment of around $2500. I plan to save for children’s future education. I also will set aside $500 monthly into a college fund for each kid. Additionally, I aim to put $800 monthly towards retirement savings to establish a great support system for my elder years. I also aim to invest in stocks to my portfolio and increase my wealth over time.
After a definite age, working overly hard becomes complicated and challenging, and retirement comes taking over. With the retirement plan, I visualize having multiple businesses to help with my expenses and personal life. Since I am self-employed, they offer a plan where I will receive $2500 monthly upon retirement. I start receiving my benefits based on my earnings From investments (stocks), the portfolio will have an annual return of 6%, where I will plan to withdraw 3% of the portfolio profits annually. Which will be about 30,000. Through financial strength, I will handle all my expenses and enjoy my retirement as I age.