The 21st century is in many aspects driven by the ability of individuals to plan for their life and set goals that project to their success. Every individual is considered responsible for their future. Consequently, planning for one’s life involves their ability to project their future, budget for their expense for a given duration, and have inputs that will propel them to achieve what they want out of their lives. Kapoor, Dlabay, and Hughes (2012), state that in the motivational pyramid, self-esteem is only achieved with the constant persistence in achieving a set goal. The goals act as a guide, but the inner motivation, is the drive towards achieving a set goal. On the other hand, Garman and Forgue (2011), define personal finance as the monetary-related decisions that an individual makes, which are related to their life achievements either in the present or the future. Each of these decisions count in the life progression of an individual’s, which makes them crucial decisions that and individual has to make in their lives. This paper, therefore, examines my personal financial condition and life goals with the projection of the future implications. Additionally, it provides a procedural process that is involved in the setting of goals.
With the small income that I get at the end of every month for being an assistant in an IT firm, I have to manage the funds and control the expenditure. Every end of the month, a budget is drawn that highlights all the materials I have to purchase and the approximated prices are also indicated. The prices and the budgets drawn are then compared to the market prices after the goods have been purchased to ensure that each amount spent is accounted. The savings, on the other hand, are calculated as a factor of the expenditure, and the additional expenses incurred in the buying. My goal financial objective is to spend wisely and save as much as I can for other developmental projects. Each investment that I intend to venture into is will be well funded to ensure that they achieve the set goals. To achieve all these, the budgets are drawn every month and the prices estimated to increase the savings.
Personal finance, Kapoor, Dlabay, and Hughes (2012) define as the decisions made on budgeting, savings, investments, insurance covers, mortgages, and any other financial costs that an individual may incur in their lives. All these are related to the ability to make a progress in life or changes that reflect on the attainment of goals. Financial decisions are made at an early stage in life when it is easier to maintain a course of action, make decision on the amount to spend and the amount to save. Garman and Forgue (2011) state that, the savings are a direct reflection of the amounts spent, when the expenditure is high, the savings are low. On the other hand, a strategized spending means that the expenditure is controlled and the savings are high. Every purchase is budgeted for in a note book and the approximated prices noted. Priority is given in the budgeting to ensure that the things that are crucial are bought first before the other goods are bought. Every purchase is made with the budget considered.
Keown (2003) introduces the concept of financial analysis of personal goals with the approach of the goals set and the factors considered in the achievement of these goals. These factors include the ability to buy within the constrictions of a budget, the constrictions of the available cash and the probability of impulse buying. Each is influenced by the principles of an individual. Kapoor, Dlabay, and Hughes (2012), assert that in the determination of a good system to use in purchasing goods, each factor that affects the rate of saving and the expenses are considered. These may include the purpose of purchase, the quality of the purchased good, which is directly related to the amounts used in the purchase, the quantity to purchase, and the value of the goods. Through an effective system of calculating these values, I have the ability to monitor the trends of purchasing and the savings of my income.
The purchasing approach, however, is meant to decide on the favorable system that is cheap, effective, and does not incur additional costs even after purchasing a good. According to Keown (2003), financial progress is more of a factor that defines the financial activity of an individual. Everyone has their own systems to use in the purchase of a good, evaluation of the prices that best suit them and the choice of the good to purchase. Varieties of factors are considered these being to save, to acquire a quality product, or to spend wisely. In each factor, there are unique characteristics that are used to define the purchase process.
In the approach to save, the quality of the good and the prices of the goods are considered. Each good purchased is acquired after an analysis of the market prices and then compared with the other sources of marketing. As a result, the amount that is convenient and allows a discount that is the amount saved is selected. In the process, the budget set is used in the selection of the goods to purchase with the intent of acquiring the best market price and the suitable quality of good. The second approach, which aims at acquiring the best quality good, is a factor of the price, the use/purpose intended, and the price of the good. These factors are some I consider important in the acquisition of goods that I intend to use. The quality of the goods acquired is a representation of the amount of funds saved due to fewer expenses on the repair and maintenance. The third approach is the expenditure incurred in the purchase.
The definition of a goal, Frasca (2009) adds that, is a component of the factors that are related to the financial decisions of an individual. Setting a goal requires that every monetary decision be made with the consideration of the expenses that are incurred. On the other hand, Keown (2003) mentions that the goals of an individual are directly affected by their ability to coordinate the entire necessary factor in their environment both internal and external. These factors mentioned include the family members who form the immediate environment (also referred to as the internal), the influence of peers, and the opportunities that can be achieved with the amounts raised. The other factors account for the external environments, which in some cases have the same influence as the internal environment.
Through the evaluation of the environment that one grows up in, it becomes easy to evaluate the different options that are available in their environments and the achievable goals. Setting of personal goals should be made with the consideration of the available resources and the nature of the goals. The set goal should, therefore, be achievable and set according to the standards that are attainable by the minimum of funds that can be availed. Each process of setting a goal, Garman and Forgue (2011) state that is important no matter the scope of the goal. Therefore, each process is followed to ensure that the objectivity of the process is achieved. The process formulated for setting goals include, identifying the issues to address, then followed by evaluating the expenses in attaining the goal, and lastly, estimating the time frame of attaining the set goals. The time is important in calculating the total amounts needed and the accrued profits from the activity.
Each goal set is given the same priority as the others and the budgeting of each goal is done beforehand (Frasca, 2009). To achieve each goal, I dedicate my time and effort in the requirements of each goal. Similarly, I conduct a research on the approaches that can be used in the development of an achievable goal. However, the success of each goal is dependent on the resources that are available. Frasca (2009) states that, goals are specific and can only be achieved if thereby is enough dedication, self interest, and will to achieve something out of the goal. On the other hand, goals are a reflection of the progressive steps that an individual uses in their activities. The evaluation of the goals is the success that is attained at the end.
On the other hand, in the achieving of success, additional support is encouraged in the evaluation of the processes to use in the attainment of a goal and the resources to use (Mandell, 2007). My goals are not of importance to me alone, but also the people around me. Therefore, their contributions are considered in the decision making and the resources to use. Similarly, the goals in life are part of the achievements that an individual seeks to accomplish. The processes involved include the outside sources that affect the decision and the type of goals that one wants to achieve. On the other hand, optional priorities that are considered as goals can also affect the success of the goal and the process to achieve them.
In conclusion, personal finance is an individual decision and plans on the things they want to achieve, the challenges of achieving them, and the factors to consider. In a broader sense it involves the budgets, savings, investments and the mortgage, which are considered as the expenses involved. However, an analysis of the financial progress of an individual is termed as the goals or objectives that an individual wants to achieve. The establishment, procedures, and the attainment of goals are all factors to consider in the development of a successful financial record. The goals are affected by both the internal and external factors, which include the family members, the resources available in an environment, and the influence by other people. Each adds up to the progress of a goal and its success. However, it differs with the different types of goals that an individual seeks to achieve from their goals. Their discipline in expenditure and savings lead to the success of a goal. On the other hand, their failure to follow set goals affects the ability to achieve goals, which is directly related to the financial health.