Table of Contents
Aims and objectives in the financial plan 5
Cash flow planning and financial analysis 5
Sources of income and cash management 5
Use of debt, debt management and elimination strategies 13
Tax minimization strategies 15
Risk management 16
Retirement and Estate planning 18
There are particular dreams and ambitions I desire to accomplish in life. These are dreams on the type of house to live in, type of school to educate my children at, the type of investments to engage in the future among many others. The analysis below is driven by the realization that other than individual effort, financial resources are vital in the achievement of the desired dreams. This plan aims to provide a series of actionable plans that will help attain different goals in life. Due to their scarcity, financial resources have to be managed in the most efficient and optimal way possible. This plan aims to help ensure the effective and efficient management of financial resources to ensure that they are effectively utilized to help lead a comfortable life and achieve desired plans and goals. This financial plan will help bring in a systematic approach to financial management and planning. It is not only a roadmap on investing and financial protection, but also a guide in the making of financial decisions (Hodgetts, 2003). It aims to help evaluate and manage the inflow and outflow of resources helping ensure that incomes, expenditures, assets and liabilities are optimally managed.
This financial plan was developed after a number of measures and exercises. The process began with the gathering of information on my friend Denny’s current financial status aiming to comprehend and assess it. Denny’s annual income as shown below is $51,700. The annual expenditure is about $ 49,400. An evaluation and analysis was carried out on the financial status. This guided the development of the financial plan detailed below. This was followed by the development of the financial plans, goals and objectives. It is hoped that the implementation of the financial plan, monitoring and its adjustment will help achieve desired goals and plans. It said that there is no right time to create and develop a financial plan. The earlier a financial plan is developed, the better and easier it is to implement the same. By helping assess needs and providing a description or analysis of individual goals, this financial plans aims to help use financial resources in the right channel the same to appropriate uses.
Table showing the annual income before the financial planning
Source of income in $
Annual Bonuses and commissions
Interest from bank deposits
Table showing the annual expenditure before the financial planning
Annual expenditure before financial plans
Type of cost
Amount in $
This analysis is put in place after a realization that planning for current activities and the future is one of the most important activities one can engage in while in the course of their life. One can only achieve success in whatever they do only when they plan for the same. A lot of time was spent in the development of this financial plan as it is the most critical part in the efforts to secure Denny’s future and that of his loved ones. The short term and long term goals were taken into consideration when developing the financial plans.