Financial Planning by https://padlet.com/sophiamadden/me0e9t0qh2v93u3p Exploring the importance of being prepared. Created by Sophia Madden. en-us 2022-11-07 01:48:38 UTC 2022-11-25 02:20:13 UTC hello@padlet.com https://padlet.net/icons/png/1f4b0.png sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372219707 This Padlet seeks to educate you on the importance of financial planning, and explores the roles that a financial "safety net", budgeting, and saving play when planning for your future. Just as it is important to plan for long-term goals, it is also important to be prepared and plan for the unexpected. ]]> 2022-11-07 01:50:59 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372219707 1. What did you learn about the topic that most surprised you? sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372220797 Nothing about this topic took me by surprise, however I would say that it seemed that the most stressed point was looking at your spending habits and creating a budget based on those. It is important to look at your history of spending to determine what you need to adjust and how you can start changing your current spending habits to work toward your future goals.]]> 2022-11-07 01:52:01 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372220797 Website #2: Your Financial Toolkit: Module 11 - Financial Planning sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372238421 This website communicates how to develop personal financial goals as well as how to plan for these goals through the use of an interactive module. The module educates its users on how to plan for specific life events, such as planning for education, getting into your first full time job, and retirement.  It is a great resource to learn about the basics when it comes to financial planning and it gives three questions to consider when beginning the planning process: 
  • Where am I now?
  • Where do I want to go?
  • How do I get from here to there?
These questions are important to ask yourself as it helps you formulate both your short term and long term financial goals. 

I chose this website because I feel that it is a valuable resource when you are beginning to plan out your finances. It places emphasis on new graduates and young professionals who are just getting into the start of their careers, which is a great time to begin financial planning if you have not already done so. This website gives users the opportunity to view an Action Plan at the end of the module to track progress and take next steps toward your individual financial plan as a road map toward your goals. 
]]> 2022-11-07 02:07:44 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372238421 2. Provide a real-life example of how this topic is relevant or interesting for you? sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372250299 As I am graduating soon and looking toward getting my first full time permanent position, I find this topic extremely important. I believe that the information that I learned from my research will allow me to create a plan to begin my own financial planning process and will assist me with managing a more consistent income. ]]> 2022-11-07 02:16:39 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372250299 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? sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372250623 I would pass on the importance of separating needs from wants, while also making sure you have the funds to support some wants every now and then. I believe that budgeting for your wants is very important for your mental health so as to not overwhelm yourself with guilt on the occasion that you do spend money on yourself. ]]> 2022-11-07 02:16:55 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372250623 Website #1: How to Budget for Needs and Wants sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372267209 This website describes the differences between financial needs and wants and outlines how to budget for each when creating a financial plan. Financial needs are necessary expenses that occur each month/year that you must pay in order to live. These needs can include rent, groceries, gas, insurance, etc. Financial wants are expenses that are allocated toward having fun. These wants can include vacation expenses, routinely getting a drink from your favourite coffee shop before work, concerts, etc. These are things that you can live without and can cut back on if you are under financial stress. This website advises users on how to shop and budget for financial wants. Some of these tips include shopping for sale items, reducing the amount of times you get take-out, and shop for better insurance rates and mobile plans.

I chose this website because I feel that it clearly describes to its users how to separate financial needs from wants. Oftentimes, our wants can feel like needs, which can affect our finances in a negative way. I feel that this website stresses the importance of being honest with your spending and being truthful about which expenses are wants that you may falsely categorize as needs. Being honest with yourself when it comes to your spending habits is one of the most important things when creating your financial plan.

]]> 2022-11-07 02:29:41 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372267209 Website #3: How to Build an Emergency Fund sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372277614 This website covers the basics about creating an emergency fund as a part of your financial plan. It describes example scenarios of when you may need an emergency fun to cover unexpected costs. These instances can include car repairs, loss of a job, accident or injury, or home and appliance repairs. These are expenses that you cannot predict having to pay for, so if you create an emergency fund, it relieves a lot of the financial stress that can come from these situations. The website goes on to describe four steps involved in creating an emergency fund for yourself.

This blog as a whole is a great resource for those seeking advice or coaching on how to manage finances and make your money work for you. Specifically, it is a great resource for women who are looking to find financial freedom and seeks to empower women and change the relationship that they have with their finances.

]]> 2022-11-07 02:38:18 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372277614 Image #1 - Lavish Lifestyles sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372282754 This photo shows a common problem that with financial planning when you may not have the proper resources. Relying on outside sources for money is not a viable financial plan. You cannot guarantee that you will inherit money, win the lottery, or invent something amazing. Even if you have an idea, you still need funding to bring that idea to life! It is important to understand your short- and long-term goals and to make your current income and the money you have work for you to reach financial goals.]]> 2022-11-07 02:42:44 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372282754 Video #1: Do You Have a Financial Plan? sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372284433 This video reveals the basics of financial planning, the steps needed to create your financial plan, and the process of calculating your net worth. The video summarizes the importance of understanding your what your short and long term goals are so that you can create a financial plan best suited to your needs. Whether its saving for retirement, wanting to take a year off of work, or wanting to purchase a condo or property, a financial plan is what will guide you toward reaching those goals.

I chose this video because I appreciated how it brought up the topic of net worth. Oftentimes, we get lost in our debts and it is easy to forget about the small debts we have. It is important to keep track of debts and figure out what our net worth is, so that we can create a financial plan that focuses on paying off existing debt before we put money toward more expenses, or at least plan for paying off debt while we save for our goals. ]]> 2022-11-07 02:44:07 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372284433 Video #2: Making a Budget in 5 Simple Steps sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372285640 This video gives a short summary of how to make a budget. It gives 5 great tips to start creating a budget that works for you based on your spending habits and your savings goals. As with some of the websites listed in this Padlet, this video outlines the importance of prioritizing your needs over your wants, and cutting back on the "nice to have" expenses. These extra expenses add up significantly overtime and can contribute to your overspending!

I decided to choose this video because it advertises a great resource that TD bank has called the My Spend app. It is a tool that can be used to track your spending and categorize expenses into needs, wants, or other. It is a great tool to see where you spend most of your money and what you need to cut back on in order to be successful with your financial plans.]]> 2022-11-07 02:45:00 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372285640 Video #3: Emergency Savings Fund sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372288511 This video reveals the importance of building a financial safety net for unplanned expenses. It outlines how emergency savings funds should be separate from your regular savings to avoid spending that money and depleting your funds. Having a separate account for your emergency savings fund is importance as it ensures that you will have that money available to you in the event that you need to have unexpected car or house maintenance done, have to take time off of work, are injured and unable to work for a period of time, etc. 

I chose this video because it talks about a different kind of emergency fund that you can create too that is often not thought of. In addition to putting money aside for emergencies, you can also slowly start to build up an emergency food fund. This allows you to use your emergency non-perishable food fund during times of unanticipated expenses. It allows you to use the money you allocate toward groceries toward emergency expenses instead. It is important to keep both types of emergency funds in mind when creating financial plans. ]]> 2022-11-07 02:47:25 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372288511 Video #4: Saving and Investing sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372289756 This video talks about the importance of good saving habits when making financial goals and developing financial plans. More specifically, it talks about how you should strive to save at least 10% of your income in a separate savings account, either for short-term goals, long-term goals, or for an emergency savings fund. There are four steps that the video outlines to effectively save your money:
1. Build an emergency fund - save equivalent of 3 to 6 months of take home pay
2. Pay yourself first - consider savings as any other bill you would regularly pay
3. Automate your savings - automatically have your bank transfer money from your checking account into your savings account
4. Make your money grow - choose accounts that offer best interest rates that give you comfort

I chose this video because it not only touches on the importance of savings, but also talks about the importance of investing your money. This allows you to grow the money you have into a comfortable amount to use for savings. The video outlines the four major types of investments you can make:
1. Investments that pay interest (savings accounts, Canada savings bonds, and guaranteed investment certificates (GICs)
2. Shares in a company (stocks and mutual funds)
3. Property (real estate, precious metals, and art)
4. Direct investment in a business]]> 2022-11-07 02:48:35 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372289756 Image #2 - Steps in Financial Planning sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372290492 This graphic illustrates the steps in the financial planning process. It outlines what you need to think about when creating your plan, both short and long term, as well as the importance of formulating goals, budgeting, and creating an emergency fund as a part of that plan. ]]> 2022-11-07 02:49:12 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372290492 Website #4: How to Make a Budget - The Ultimate Guide sophiamadden https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372300236 This website discusses the budgeting side of creating your financial plan. As mentioned in other articles, this website talks about the important of creating short- and long-term goals for your future, so you can begin to plan for them. It also incorporates the importance of tracking your spending and reviewing past credit and debit card spend reports. Tracking your spending allows you to better understand your tendencies when making purchases, so that you can be honest with yourself and make the necessary changes in your spending habits to reach your financial goals. 

It describes 5 stages for building a budget & staying within it:
Step 1 - Record Your Net Income
Step 2 - List All Your Expenses by Category 
Step 3 - List All Debts & Minimum Payment
Step 4 - Include Your Money Saving Goals
Step 5 - Total Your Income & Expenses/Debt Servicing/Savings and Review

I chose this website because it talks about holding yourself accountable when budgeting. It suggests telling someone about your budgeting goals, using budgeting apps, and finding a budgeting style that works for your needs. This is an important thing to keep in mind when creating a budget for your financial plan as it is something that you must actively work on and allocate time toward.]]> 2022-11-07 02:57:07 UTC https://padlet.com/sophiamadden/me0e9t0qh2v93u3p/wish/2372300236