Written Assignment 1

University of the People **We aren't endorsed by this school
BUS 2204
Nov 4, 2023
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1 University of the People Course. Bus 2204-01 - Personal Finance Written Assignment 1. Submitted by. Course Professor. Dr. Nirosha Sovis
2 In the exercise given, Alice intends to achieve her financial goals ranging from short term, midterm, and long-term goals to. It is important to analyse Alice's goals using SMART goals model. a. Pay Off Student Loan. Specific : The goal is specific, She wants to repay her student loan when she starts working. Measurable : Alice can track her loan balance online when she commence the payback. Achievable : She can achieve the loan repayment if payments are scheduled to the last payback. Relevant : The financial plan is relevant to financial health and future goals. Time-bound : Alice could set a specific payback to offset the loan. E.g example, 5 years repayment plan." b. Buy A House and Save For Children's Education. Specific : The goal is specific. Buy a house and save for children's education. Measurable : The project goal is measurable and trackable. Achievable : Alice income is enough to achieve the goal Relevant : Alice plan is very relevant to her family's future financial safety. Time-bound : Alice should set a target timeline for buying the house and saving for education, e.g., "Buy a house within 5 years and save $X for each child's education over 18 years." c. Accumulate assets: Specific : This goal is vague; it should specify what types of assets (e.g., stocks, real estate) and why.
3 Measurable : It is not measurable without defining the assets. Achievable : Achievability depends on her financial situation and risk tolerance. R elevant : It needs to be more specific about why she wants to accumulate these assets. Time-bound : There's no specific timeframe mentioned. d. Retire: Specific : The goal is specific in the sense that it mentions retirement. Measurable : It is not measurable without specifying a retirement age and financial target. Achievable: Achievability depends on her current savings, future savings rate, and retirement age. Relevant: Retirement is a relevant long-term goal for everyone. Time-bound : Alice should specify the age at which she plans to retire and her retirement income goal. e. Travel around the world in a sailboat: Specific : The goal is specific about the desire to travel in a sailboat. Measurable: It is somewhat measurable, as she can track progress in planning and savings. A chievable : Achievability depends on her financial resources, experience, and time commitment. Relevant: It's relevant if it aligns with her personal interests and financial situation. Time-bound: Alice should set a timeframe or age by which she wants to achieve this goal[ CITATION Sie09 \l 1033 ]. Alice's goals is achievable when applied on SMART goal model elements, especially in the case of goals related to assets, retirement, and sailboat travel. This will help her create a more structured and actionable financial plan.
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