Personal Finance Plan

John Sullivan
5/3/16
Personal Finance Plan

Being well planned out Financially is extremely important in today’s society. Throughout my life I have rarely worried about my financial plan and honestly didn’t really have much knowledge on it to begin with. Growing up right outside Boston, Massachusetts and being supported financially by my parents I had little to no worry about my finances. I’ve always known about money and my parents always tried to teach me to be smart with my money. It is easy to be careless when it comes to money since some people see it as just a piece of paper, but the value of money is unlike anything else in the world. Being a twenty-one year old junior here at Rutgers University the real world is beginning to slowly …show more content…
But at some point I will probably have to get my own car to travel around outside the city and for that I’d probably have to get a personal loan. In order to find the best rates on a loan I’d probably do some research through various sources. In order to get the loan I’d need a line of credit attached to my checking account so that my checks will not bounce. In order to get the line of credit I will need to open up a credit card in order to get credit. I will need a good credit report if I want to get a car or take out a loan so I will need to make sure that the spending with this card does not get out of hand. I will need to pay monthly to the credit card company in order to get good credit. With good credit comes a good credit score and with a good credit score a lot can be accomplished financially so it is extremely important to make sure to pay on time. The risk with getting a credit card is that it increases your risk of identity theft. Identity theft is a major problem that companies are continuously trying to fix. At the same time though there are many ways to protect oneself from identity theft. I am definitely going to take steps to further protect myself from identity theft such as shredding all my financial statements and other financial documents. I am also going to make sure I pick safe and secure passwords for all my online banking accounts. And lastly …show more content…
If people are smart with their money and invest it intelligently then they have the chance to really up their liquidity. Putting my money into different places where it can grow and become more money is all positive. Not only will it give me the ability for my money to grow but it is also a very secure way to deal with my finances. Research is very important when investing money and that is why I will definitely use professional help when investing. I will need to ask a lot of questions to make sure I know exactly what is going on with my money. Professional help will definitely help me do it the best and most secure way. I need to have risk tolerance and be aware of what I’m risking and to make sure I don’t lose all my money in investments. Asset Allocation is the strategy I will use when investing my money. Asset allocation allows me to learn my risk versus reward when investing. This strategy is extremely important and it is a “base policy mix” that will help me mix my bonds and stocks to make sure I’m getting the best in return instead of investing in either one. With my job I plan to set up a 401k retirement plan so I can set aside money each month to invest for later in life. Money grows in the 401k and it will allow me to retire with little to no stress and it will let live comfortably. I will also plan on putting some money into a Roth IRA, which would also give me some

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