Personal Finance Plan - Its easy you just have to do this that then then then then then then then then add this PDF

Preview

Summary

Its easy you just have to do this that then then then then then then then then just add this number...

Description

INTRODUCTION TO BUSINESS

Weight: 5 % Marks:

/50

Personal Finance Plan Instructions Two of you have recently graduated from SAIT with diplomas in your perspective majors and have decided to move into a condominium that you are going to purchase jointly. The purchase decision has been made much easier as one of you just received a $40,000 inheritance from a relative. By using the information that you compiled in your SAIT and You assignment during the earlier part of the term, you will be able to determine what a recent graduate in your field will be earning in an entry position. You are to fill in the associated budget template based on real-estate prices and related expenses associated with the Calgary market. Use your resources to determine what your costs may be and back up documentation is required to verify these costs. Upon completion of the budget template, each group member is to determine their investment risk tolerance using the Rutgers Investment Risk Tolerance Quiz (http://njaes.rutgers.edu/money/riskquiz/). Each member will then write, Including your risk tolerance score and related explanation, a ½ page reflection on the importance of budgeting and other observations that you may have gathered while completing this assignment. Record these reflections in the space provided below. Be sure to save your file and upload it to the correct assignment folder in D2L by the due date. The Link below will assist you in this assignment: https://www.sait.ca/programs-and-courses/full-time-studies/diplomas/businessadministration

Personal Reflections NOTE: Any student who does not submit their risk assessment results in a ½ page personal reflection will not be awarded a grade on this assignment.

1

School of Business

© 2019, Southern Alberta Institute of Technology

INTRODUCTION TO BUSINESS

Your Monthly Budget Worksheet Monthly Amount

Item Net Salary 1 Net Salary 2

Assumptions

4,167.00

Net salary is approximate 75% of gross

Total Monthly Amount

Item

* 1-Mortgage * 2- Condo fees * 3-Property Taxes * 4-Condo (house) insurance *5- Car insurance Maintenance/ Gas car Life insurance

All decisions marked with an * must use the assumptions provided and documented in the table at the end of this worksheet Condo maximum price $300,000 ( base mortgage on 20 yr. amortization with monthly payments) The condo listing will provide this cost Use the City of Calgary website Obtain a quote You own a 2010 CRV worth $15,000 - must have a quote (remember divide by 12) Use the following resource to assist you with this calculation The True Cost of Owning a Car

Donations Utilities include Electricity, gas, water unless included in condo fees

* 6-Utilities Telephone / Cell Phone

Cable/internet actual quote required

* 7-Cable & Internet Food Pet supplies

Emergency fund must equate to 3-6 months living expenses (estimate how much to save per month to create the fund in 12 months) Entertainment equates to all other variable expenses including eating out, movies etc.….

Emergency Fund/Savings Entertainment Clothing Other Total Income Less Expenses Monthly Amount

Item Monthly income Monthly expenses Surplus/Deficit

2

Insure you are not in a deficit position.

School of Business

© 2019, Southern Alberta Institute of Technology

INTRODUCTION TO BUSINESS

Document your decisions and Calculations in the table provided below

Referenc e 1 2 3 4 5

Your documentation

T2J 4L4 7 My risk-taking score was a 23, which means that I am on the lower end of the risk takers spectrum. I completely agree with this because I am not one do make huge risks or invest money in places, I’m not 99% sure of. If I were given the opportunity to either make a smaller amount of money but risk nothing or make more money but have the possibility to lose a lot, I am more likely to choose the smaller amount just due a certain chance of making a profit. This demonstrates that living a life that is based on paycheque to paycheque is not something that I would want to do. Having said that, since I’m not considered to be very risky with my money, I should probably invest my earnings into safer investments, a place where I’m not necessarily going to lose my money. In my future I want to be able to not worry about retirement, or stressing about having enough money for upcoming bills, etc. Even though the investments that I’m more likely to be a part of don’t necessarily give the highest return rate, they are basically risk free, meaning no matter what I will be making money.

3

School of Business

© 2019, Southern Alberta Institute of Technology...