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BUS 2204 : Personal Finance
Written Assignment Unit 1: Personal Finance
Danil Karpov
To make plan for Alice, we should take into consideration her current situation. Her evaluated
assets are 5,250$ and her debt is 55.700$. Her income 35,720, after all her expenses she is left
with 10,520 for paying out her education debt and 2,400 for car loan.(Siegel&Yacht,2009) So
knowing this info we can say that within 5 years she would be done with her college debt and
within 1 year she would almost cover her car loan.
Before we proceed to SMART-technique, let’s see a bigger picture of what she can and should
do. She can work on her main job, which with time will pay her more, but meanwhile she can
pick a second job as well. With that money she would be able to save up for her future assets.
When she is able to have extra-income she can put away those money for her further goal.
Having this information lets make a plan for her short and long term goals, using SMART-
technique:
Specific – Alice is able to pay out her student loan within 5 years and car loan within a year. She
should find a second job to pay loans out as fast as she can and proceed to her further goals
which require additional finances as well
Measurable- She should find the job that will give her extra income 800-1200 a month, which is
just 200-300$ a week. This will increase her annual income by approximately 10,000$.
Attainable – Alice is young professional, who does not have a family yet, so she would be able
to work extra hours until she pays out her loans.
Realistic – if the job market is stable enough she would always be able to find a part-time job,
especially if she is ready to work in a service (waitress, barmen, cleaning)
BUS 2204 : Personal Finance
Written Assignment Unit 1: Personal Finance
Danil Karpov
To make plan for Alice, we should take into consideration her current situation. Her evaluated
assets are 5,250$ and her debt is 55.700$. Her income 35,720, after all her expenses she is left
with 10,520 for paying out her education debt and 2,400 for car loan.(Siegel&Yacht,2009) So
knowing this info we can say that within 5 years she would be done with her college debt and
within 1 year she would almost cover her car loan.
Before we proceed to SMART-technique, let’s see a bigger picture of what she can and should
do. She can work on her main job, which with time will pay her more, but meanwhile she can
pick a second job as well. With that money she would be able to save up for her future assets.
When she is able to have extra-income she can put away those money for her further goal.
Having this information lets make a plan for her short and long term goals, using SMART-
technique:
Specific – Alice is able to pay out her student loan within 5 years and car loan within a year. She
should find a second job to pay loans out as fast as she can and proceed to her further goals
which require additional finances as well
Measurable- She should find the job that will give her extra income 800-1200 a month, which is
just 200-300$ a week. This will increase her annual income by approximately 10,000$.
Attainable – Alice is young professional, who does not have a family yet, so she would be able
to work extra hours until she pays out her loans.
Realistic – if the job market is stable enough she would always be able to find a part-time job,
especially if she is ready to work in a service (waitress, barmen, cleaning)
