Personal Finance Assignment Essay Example | Topics and Well Written Essays - 500 words - 1

Personal Finance Assignment - Essay ExampleThe current disposable monthly income aft(prenominal) paying their glacial monthly expenses is $2,423 a month.The couple has to set some long term fiscal objectives. These objectives must be projected based on the amount of money that the couple currently has available. The frozen(p) monthly expenses of the couple are $935. There are other protean expenses that occur during the month much(prenominal) as lunch money, additional gasoline expenses for leisure trips, car maintenance, entertainment, and medical expenses which must be considered in a budget. Sam and Judy must allocate approximately $500 for additional expenses. The total fixed and variable expenses of the couple are $1,435. The amount of disposable income Sam and Judy have afterward paying all their fixed and variable expenses is $1,923.It is time for Sam and Judy to set some bypass, medium, and long term financial goals. In the short term the couple must create a savings a nd investment plan for their future. The almost common land types of investments are stocks and bonds (Besley & Brigham). The cash that the couple has left over after paying variable and fixed expenses amounts to $23,076 for the offset printing year. The $23,076 should be divided into savings, investment, and retirement plans. The allocation ratio of the plans is divided in the following manner 65% savings, 25% investment, and 10% retirement plan. The short term goal of the couple should be to save passable money to get a subdue wages for a house. The most valuable asset of most Americans is the equity of their homes. The couple should target defileing a home worth $150,000. To be able to buy the home the couple must save at least $15,000 for down payment and closing costs. The down payment of the home is 7.5% and 2.5% for closing costs. It will take Sam and Judy 12 months to save the $15,000. The mortgage payment of the $150,000 loan with a 7.5% down payment for a term of 30 years is $745.The couple after year one