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Finance (Case Study) - Essay Example
Finance & Accounting
Pages 7 (1757 words)
FINANCE (CASE STUDY) (Author’s name) (Institutional Affiliation) First Two Things They Should Do Work out their Current Saving Capacity A financial overview of the couple tells me that they are able to live comfortably without having to stay in debt or struggle to meet their needs…
They should work out how much (after paying off all their debts and driving down their expenditure) they can save every month. Good saving habits and practices begin with a clear knowledge and understanding of what one is capable of and how much one can spend at any given time without negatively affecting his/her financial health. The couple must therefore know how much they are capable of saving every month, compare that figure to the actual amount they are saving and then start cutting down on unnecessary spending. Work out a Saving Plan Ascertaining saving is only the first step. It acts as a precursor to the next course of action, which is working out a saving plan. The most important thing to note here is that one thing leads to the other, and in a case like this it is advisable to move in a systematic and methodical manner. Assuming the couple has now figured out how much they are capable of saving every month, they can now move to achieve that goal. All expenditures should be planned in such a way that the saving targets are either met at the end of every month (or even surpassed). So long as the couple is saving money, meeting its targets and avoiding unnecessary expenditures, a strong financial foundation has been laid which will act as a launching pad for financial security and freedom. ...