StudentShare solutions
Triangle menu

Finance (Case Study) - Essay Example

Nobody downloaded yet

Extract of sample
Finance (Case Study)

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. Their Current Financial Situation I would say that the couple is currently doing fine. Their total expenditure per annum is $228,348, compared to their total income per annum which is $294,650. This means that at the end of every month they are able to save $66,302. In addition to this, their investments and assets total $1,771,500, while their total debt is $28,965. I would therefore say that since the couple is not in debt and they are able to save some money, their financial position is pretty healthy. As a consequence, it is possible that through better saving and spending habits, they can save even more money and maintain a positive financial outlook going forward. All the Aspects of their Finances Kevin and Alex are capable of saving more than they are saving now. The only thing they need to do is to eliminate any unnecessary costs and expenditures that can only serve to increase their debt. It is however encouraging to see that both of them have invested in either a superannuation or some other type of fund. Alex diverts a portion of her salary ($33,000) to a superannuation fund, while Kevin has invested in a superfund. Apart from this, the couple has invested in a share portfolio, an investment unit and a debenture. The superannuation is important because it provides them with a sense of security and something to fall back on once they are either retired or are unable to work. The debenture, investment unit and share portfolio also offer viable financial alternatives that would otherwise be unavailable if the couple did not seek financial security. Their Overall Situation I would laud the couple for making efforts to secure their future, because although they are faced with numerous financial challenges, they are managing to stay afloat. With a combined income of less than $300,000, it is commendable that they have made some very good investment moves. They took out a mortgage, and even though it was $850,000 at the time they took it, their house is now worth $1,050,000. This means that once they stop remitting the monthly payments that are due, they will own their home and probably get even a higher value for ...Show more

Summary

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…
Author : kklocko
Finance (Case Study) essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Finance (Case Study)"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Finance and Accounting Essay: Case Study: Manchester Meerkat Company
Therefore, the ability of a business to overcome these challenges ensures its survival. One of the main challenges in a business environment is budget variances. In business, a variance is the difference between what the business managers expected and budgeted for and what they really received at the end of a financial year.
10 pages (2500 words) Essay
Finance and accounting essay: case study analysis report
It also reflects the issues related to the currency exchange between the Green Hardwood Corporation and its suppliers. The report will provide a structure which will help the company to manage the operational risk in future. Green Hardwood Corporation (GHC) is a multinational company manufacturing decorative hardwoods including two main divisions i.e.
10 pages (2500 words) Essay
Managerial Finance and Accounting - Case Study: Kingfisher Plc
“The acquisition of Woolworth by Paternoster made ways for a fairly small chain consisting of home development stores, known as B&Q. This was the commencement of decade comprising of chief expansions that led to one of the widest retail conglomerates of Europe.
7 pages (1750 words) Essay
Corporate Finance: Verizon Vodafone case study
Finally, frequent talks between Verizon and Vodafone brought an end to this conflict and Vodafone agreed to sell their whole 45% holding in the joint venture to Verizon. When the Vodafone investors positively responded to this business deal, Verizon stockholders mixed opinions about the proposal.
10 pages (2500 words) Essay
Managing Finance (case study)
repare a SWOT analysis for the company based on the limited information provided, assess the risks faced by the organization, offer a report to shareholders regarding corporate performance, and provide a statement of our own satisfaction regarding Buzzard LTD’s achievements.
10 pages (2500 words) Essay
Strategic Corporate Finance Essay/Case Study
IHG has been in business for nearly 3 decades and the management believes in steady growth and aims at 8% to 10% annual revenue growth in the long term. However, the company is now presented with a prospective opportunity to invest in
10 pages (2500 words) Essay
International finance case study
The company is now considering investing in Ruritania located in Eastern Europe. The company has taken the decision of investing £ 55 million to set up a new manufacturing facility in Ruritania. The company will mainly benefit from the low
10 pages (2500 words) Essay
ACC2211 MANAGERIAL FINANCE AND ACCOUNTING - Case Study: Kingfisher plc
The chain of Comet electrical was bought by the company in 1984 followed by buying stores of Superdrug health and beauty in 1987”. (Kingfisher, 2011) In the meantime, B&Q was expanding its out of town appearance in order to become the leader of home
7 pages (1750 words) Essay
Strategic Corporate Finance case study 1
mpany is facing a problem of capital rationing such that the company can pick either of these projects but it cannot accept both projects simultaneously. One of the projects is named as “onshore” project and the other one is “offshore”. Both these projects are expected
10 pages (2500 words) Essay
Personal Finance - Case Study
This means that AL AHLI’s charges may be less or more than what DOHA offers. These comparisons suggest that it is wise to get credit cards from DOHA if an individual earns an average salary. AL AHLI’s offer is best for those who earn lump sum salaries. The
2 pages (500 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment