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Assignment 2 Financial Plan Explanation Word Template
While writing responses to the prompts below, you may need to refer back to the budget you created in the Assignment 2 Financial Plan Budget Excel Template. Make sure you have completed your budget before completing this portion of the assignment.
1. Identify the savings goal and the time frame you determined for reaching your goal. Why is the time frame you identified realistic?
[Write your response to Question 1 here.]
2. Explain why you chose the housing option you did and how it will help you achieve your selected financial goal.
a. What considerations, if any, did you give to the following when selecting your housing option?
i. Time frame for savings goal.
ii. Familial situation.
iii. Quality of life.
iv. Trade-off decisions.
v. Other considerations.
[Write your response to Question 2 here.]
3. Explain your choices for non-rent expenditures and how they will help achieve your savings goal within the time frame.
a. How did you make the choices you did regarding non-rent expenditures?
b. How do your expenditures align with the financial goal you selected?
[Write your response to Question 3 here.]
4. Reflect on the productivity strategies you used to break down your financial plan into smaller steps to help you stay organized and productive.
a. How closely did you follow the plan you thought through earlier in the assignment instructions?
b. How did a step-by-step and organized approach help you to adjust your financial priorities and financial plan?
c. How did the approach you use draw upon productivity strategies that you had previously learned?
[Write your response to Question 4 here.]
Assignment 2 Financial Plan Budget Excel Template
Income $ 50,000 –
Assignment 2 Instructions for Excel Sheet:
1. Identify an annual income. This can be the $50,000 already in the “Income” cell, or you can use an income of your choice. If you use a different annual income, remember to change your income number.
2. Choose one of these five financial goals (remember to set a timeline for yourself that ranges from 1 year to 10 years). The number you put in the “Savings” cell of the budget table should be the cost of the goal you are saving for divided by the number of years you plan to be saving for it.
a. Create an emergency fund of $1,000.
b. Save for a vacation that will cost $2,000.
c. Save to buy a $15,000 vehicle.
d. Save for a down payment of $40,000 to buy a house.
e. Save $50,000 for education (personal, child, family, etc.).
3. Choose one of these three housing options. Put the dollar number in the budget table above for “Housing.”
a. Rent a house. Cost is $15,000 per year.
b. Rent an apartment. Cost is $12,000 per year.
c. Rent a room only. Cost is $9,000 per year.
4. Fill in dollar values for the rest of your expenditures. This can be based on either a hypothetical ideal or what you might typically spend on these categories.
5. Use formulas to calculate the sum for your “Total” cell in the “Dollars” column and to fill in the “Percent” column.
6. Check to make sure your “Total” dollars is equal to the annual income you chose and that your “Total” percent is 100%.
End of worksheet
ECO 110: How to Do the Excel Calculations for Assignment 2 in Week 7
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