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Consider the Tips for Responsible Financial Decisions discussed in this module. Using some of these tips, what advice would you give Brian on at least one of his financial decisions? How will your advice help Brian reach his financial goal?

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Answer:

In order for Brian to reach his financial goals he needs to do the following:

1. Set those goals using the ASMART goals setting techniques.

His goals must be Aligned with his personal aspirations;

He must be Specific with the figures he plans to reach in terms of savings, investments etc;

The goals must be Measurable;

The goals must be Achievable; There is no use setting goals that cannot be attained;

The goals must be Realistic; Brian cannot be on a monthly salary of $10,000 and hope to attain a savings of $1 000,000

The goals must be Time-bound; He must put a date to the financial goals

So here is an example: Assuming that he earns $10,000 every month and his expenses every month is $6500, Brian can set his goals as follows:

I'm am saving toward my Ph.D. I have by December 31, 2021 the sum of $30,000. I will achieve this by setting aside at least $2,500 dollars every month starting from January 31, 2021

Another set of habits for financially responsible people include but are not limited to the following:

  • they make a commitment to a never-ending personal improvement by reading books that increase their financial literacy;
  • make a budget and stick to it etc.

Cheers

User Roudan
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