Write down your financial vision for your life in the future?

Write down your financial vision for your life in the future?
o Where do you want to live?
o How much money would you like to realistically make a year?
o What are some of the luxuries you would like to experience? (items, vacations, etc.)
o Potential family? If so, what would you envision?
– Discuss the average salary for your potential future career.
o Highlight what the entry salaries are and what you can potentially make within 10 years
and then 20 years?
– Develop a monthly budget based on your early career salary. (be honest)
– https://www.tonyrobbins.com/ask-tony/financial-future/
– Look up the following and give realistic costs (do some research and do not make this up)
o Housing costs (home/rental)
o Student loans
o Bills/utilities
o Transportation
o Food
o Insurance costs (car, rental/home, etc.)
o Recreation
o Savings
o If thinking about having children – include childcare costs like daycare, etc.
o Look up 3 potential homes you would like to purchase in an area you would like to live
 Choose one and give the housing cost
 What is the monthly mortgage
 Lookup private mortgage insurance (PMI) and calculate the costs and add that
to your monthly mortgage costs
 Look up home insurance and add that to your monthly mortgage total
 How much would a 5% deposit be and how much would a 20% deposit be (from
the cost of your home)
 How long would it take you to save for that based on your salary above and
other monthly expenses?
o Finally look at your tax bracket and how much you potentially get taxed per year
o Total these monthly costs and multiply by 12 and give me your needed salary to
accomplish these early goals
– Discuss what this looks like and your initial impressions of executing this.
– Investing
o Look up life insurance plans and include the costs of one you would use
o Look up 401K and describe what they are
o Research the differences between a Traditional IRA and Roth IRA and describe
o Look up compound interest and discuss
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o Use this calculator https://www.investor.gov/financial-tools-
calculators/calculators/compound-interest-calculator (do not use interest variance rate
box)
 Put in an initial deposit based on your budget above ($1,000 is a good starting
point)
 Enter a monthly contribution you could realistically afford – then enter a
monthly contribution you would need to meet your financial freedom
 Using 3 interests rates (5%, 7%, 9%)
 Using 5 different years (5, 10, 20, 30)
 Report each
o Define stocks, index funds, and ETFs
o Choose 2 stocks and 2 index funds you would be interested in investing in
o Look at a 5 year chart for each and give the percentage growth of them for each
 Use this percentage calculator (Do this for each)
 Then choose one of the stocks and pretend you spent $1,000 and gained a
percentage increase using the calculator below
• https://www.calculator.net/percent-
calculator.html?c2par1=1000&c2type=increase&c2par2=566&c2par3=&
ctype=2&x=82&y=25#pctincrease (Type your numbers in the
“percentage change calculator) – put 1,000 in the first box and then the
actual percentage change from one of the stocks you chose and hit
calculate
– Finally reflect on everything you’ve learned from this assignment.