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This image outlines the good and bad  money habits.

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1.What did you learn about your topic that surprised you the most?

What surprised me the most about learning this topic was that without budgeting, I won’t be able to complete a lot of my long-term projects.

2. Provide a real-life example of how this topic is relevant or interesting

for you.

As an international student, I used to rely fully on my parents and I had no job, no savings or emergency funds. I never felt like I would ever need anything that my parents couldn’t give me until when covid came and my dad’s business came crashing down. I had to take charge of my finances. So that’s why this topic is really important to me.

3. If you could pass on your knowledge to a family member or friend, what

do you think is the most important thing to pass on?

If I could pass on a knowledge to a family member, I would pass on building an emergency fund and investing in assets.

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This video talks about the top budgeting apps in 2022. A budget helps you reach your goal, having a very good budgeting app helps a lot with financial planning. A lot of people don’t have budgeting apps neither do they watch where their money goes to. It also emphasizes that allocating your money to a budgeting system helps in the long run. It also lists types of budgeting systems.

I chose this video because it has a deep thorough explanation about budgeting. I am a big fan of budgeting and saving, watching this video enlightened me a lot more about financial freedom.

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This image lists how to plan your finances in eight steps. It outlines that formulating goals, budgeting, investing long term and preparing for emergencies are ways to plan well financially.

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Video #1-How to budget effectively in financial planning

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Video #1-How to budget effectively in financial planning

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This video emphasizes on how to budget. A lot of us do not know where our money goes to on a normal day. This video talks about the 50/30/20 rule. This particular rule has helped me a lot. The video also helps us understand where our money is going to.

I chose this particular video because I’ve watched it before and it impacted my financial planning. It helped me save more money and curtail my spending habits.  One information I really loved in this video is to keep an emergency fund!! Being a student it was hard for me to even save but the first week of our course work and this video helped me a lot.

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How To Manage Your Money (50/30/20 Rule)

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Website #2- Importance of financial planning

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Website #2- Importance of financial planning

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This website explains the importance of financial planning. Financial planning is important because it helps you stay out of debt; you can manage your cash flow better. It also explains the various ways to go about financial planning. With a proper investment plan and making sure one’s family is secure with insurance

I chose this website because it outlines the importance of financial planning and emphasizes what makes a good financial plan. one thing I found useful is that having a good standard of living, an increase in cash flow, savings, and understanding how money works are important when making a financial plan.

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Ten Reasons Why Financial Planning is Important

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Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals. Here are ten powerful reasons why financial planning – with the help of a professional financial advisor – can help you pursue your goals.

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Website #2- Importance of financial planning

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Website #2- Importance of financial planning

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this website explains the importance of financial planning. Financial planning is important because it helps you stay out of debt; you can manage your cash flow better. It also explains the various ways to go about financial planning. With a proper investment plan and making sure one’s family is secure wikth insurance

I chose this website because, it outlines the importance of financial planning and emphasizes on how you can plan well financially. It also teaches that having a good standard of living, increase in cash flow, savings and understanding how money works are important when making a financial plan.

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Ten Reasons Why Financial Planning is Important

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Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals. Here are ten powerful reasons why financial planning – with the help of a professional financial advisor – can help you pursue your goals.

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Welcome to my wall!
Here you will learn about financial planning; the importance of having a financial safety net, how savings and budgeting are necessary components of a financial plan, and the types of financial planning.

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This website explains what a financial plan is and what to consider when planning. It states that a financial plan contains a person's current monetary situation as well as the financial goal they want to meet.  It also states the purpose of a financial plan, for example buying a home or traveling around the world.

I chose this website because it teaches a lot of information on financial planning, it is fact-based and peer-reviewed. It has a lot of real-life steps to take toward good financial planning and it also helps you understand the key components of a financial plan.

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What Is a Financial Plan?

A financial plan is a document containing a person's current money situation and long-term monetary goals, as well as strategies to achieve those goals. A financial plan begins with a thorough evaluation of the person's current financial state and future expectations and may be created independently or with the help of a certified financial planner.

Key Takeaways

Understanding the Financial Plan

Whether you're going it alone or with a financial planner, the first step in creating a financial plan is gathering a lot of bits of paper-or, more likely these days, cutting and pasting numbers from various web-based accounts into a document or spreadsheet.

You may complete the following steps as an individual or a couple:

Calculating net worth

To figure out your current net worth, list all of the following:

Your assets: This may include a home and a car, some cash in the bank, money invested in a 401(k) plan, and anything else of value that you own.

Your liabilities: These may include credit card debt, student debt, an outstanding mortgage, and a car loan. In some cases, you may have access to a grace period or moratorium.

The formula for your current net worth is your total assets minus your total liabilities.

Determining cash flow

You can't create a financial plan without knowing where your money is going-and when. Documenting transactions-the flow of cash in and out-will help you determine how much you need every month for necessities, how much might be left for saving and investing, and even where you can cut back a little-or a lot.

One way to get this done is to skim through your checking account and credit card statements. Collectively, they should provide a fairly complete history of your spending.

If your expenses vary a lot seasonally, then it's best to go through an entire year-counting up all the expenditures in each category and then dividing by 12 to get an average monthly estimate of your spending. This way, you won't underestimate or overestimate what you spend on utilities, nor will you forget to account for holiday gifts or a vacation.

Document how much you've paid over a year in basic housing expenses like rent or mortgage payments, utilities, credit card interest, and even home furnishings. Add categories for food, clothing, transportation, medical insurance, and non-covered medical expenses, then document separately your real spending on entertainment, dining out, and vacation travel.

As you look over your own financial records, your personal spending categories will stand out. You may have an expensive hobby or a pampered pet. Document the costs.

Once you add up all these numbers for a year and then divide by 12, you'll know exactly what your cash flow has been.

Considering your priorities

The core of a financial plan is a person's clearly defined goals. These may include funding a college education for the children, buying a larger home, starting a business, retiring on time, or leaving a legacy.

No one can tell you how to prioritize these goals. However, a professional financial planner may be able to help you choose a detailed savings plan and specific investments that will help you tick them off, one by one.

Special Considerations of a Financial Plan

Financial plans don't have a set template. A licensed financial planner will be able to create one that fits you and your expectations. Once complete, it may prompt you to make changes in the short term that will help ensure a smooth transition through life's financial phases.

The following elements should be addressed and revised as necessary:

Retirement strategy: No matter what your priorities are, the plan should include a strategy for accumulating the retirement income that you need.

Comprehensive risk management plan: This includes a review of life and disability insurance, personal liability coverage, property and casualty coverage, and catastrophic coverage.

Long-term investment plan: A customized plan based on specific investment objectives and a personal risk tolerance profile.

Tax reduction strategy: A strategy for minimizing taxes on personal income to the extent allowed by the tax code.

Estate plan: Arrangements for the benefit and protection of your heirs.

What is the Purpose of a Financial Plan?

A financial plan is designed to help you make the best use of your money and achieve long-term financial goals, whether they are sending your children to college, buying a bigger home, leaving a legacy, or enjoying a comfortable retirement.

How Do I Write a Financial Plan?

You can write a financial plan yourself or enlist the help of a professional financial planner. The first step is to calculate your net worth and identify your spending habits. Once this has been documented, you need to consider longer-term objectives and come up with ways to achieve them.

What Are the Key Components of a Financial Plan?

Financial plans don't have a set format, although the good ones do tend to focus more or less on the same things. After calculating your net worth and spending habits, you'll explore your financial goals and figure out ways to make them achievable. Usually, this involves some form of budgeting and creating a means to put money away each month. To ensure that you live comfortably for the rest of your life, it's generally advisable to devise a retirement, risk management, and long-term investment strategy and keep tax expenses to a minimum.

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A financial plan is a document containing a person's current money situation and long-term monetary goals, as well as strategies to achieve those goals. A financial plan begins with a thorough evaluation of the person's current financial state and future expectations and may be created independently or with the help of a certified financial planner.