How to Write a Financial Planning Essay

writing a financial planning essay

Whether you’re running a company or managing your personal finances, organizing finances can be daunting. Some people are able to make it week to week and month to month without doing much financial organization. They’re seemingly able to just work with what they have and not worry too much about staying organized. This is a rare skill.

If you have financial goals that you wish to achieve, then having a financial plan is absolutely essential. A good financial plan has to go beyond merely jotting down what money you have coming in and what you have to spend it on. If you want to make any real progress in getting ahead, then you need a plan that goes in depth. You need a financial planning essay. Here you’ll learn everything you need about how to write a financial planning essay and what one can do for your financial future.

Why Write an Essay?

If you have money, you likely already have some idea of how you need or want to spend it. So, why would you want to write an essay, something most people don’t do past college? The answer is simple: clarity of short-term and long-term financial goals.

When you create a financial planning essay, you’re putting down in detail what your financial plan is. You’re also defining the manner in which you will carry the plan out. It’s one thing to sit down and list your expenses and your projected income, but it’s easy for spending to get out of control without a more meticulous plan in place.

Writing in essay form helps you keep track how much money you have coming in. You also keep track of where it came from. By sitting down and carefully describing where your money is coming from and how, when, and where you are going to spend you are being explicitly clear in your goals.

What Information Goes in a Financial Planning Essay?

Financial planning is a process that requires you to know how much money you have coming, what expenses you have, and when that money must be paid. It also enables you to factor in money and assets that are already available to you.

Weighing Options

If there is an expense your current budget does not cover, then you need to address it in the essay. Maybe you have goods around your home that you could pawn? Can you take out a loan? Maybe you can borrow money from a friend? Any means by which you can bring in money should be listed in your essay.

If you include borrowing money in your financial essay you need to also include how you plan to pay it back. If you take a loan that requires you to pay in installments, you need to feature those installments as part of the essay.

Structure

When creating a financial planning essay there is no real “right” way to go about organizing the content. However, as with any essay, if you want it to make sense it must have some form of structure. Here is just one potential financial planning essay structure that you can utilize:

  • Money goals – In this paragraph, you should state explicitly what your financial goals are and in what time frame you intend to meet them.
  • Current funds and assets – This is where you list your current amounts of money or assets that can be leveraged to get money.
  • Income – This is where you state your income and the intervals at which you receive it.
  • Outgoing expenses – This is a detailed account of what bills and expenses you need to pay in the given time frame that you have chosen. You must also outline how exactly you will pay each of these expenses.
  • Alternative means of income – This is where you detail any  alternative means of bringing in money.These are sources you perhaps had not yet considered in your goal-making. Perhaps you have decided to take on a side hustle? Maybe you are thinking of donating plasma for money? Maybe you are considering having a garage/yard sale? Perhaps a family member owes you some money? Whatever alternative money you could have could make a huge difference in helping you achieve your financial goals in a more timely manner.
  • Goal implementation – This paragraph is arguably the most important one. Here you break down what your goals are, when you wish to accomplish them, and how you intend to do it. Putting your goals and your plans for carrying them out is critical because you are giving yourself a perfect guide for how to achieve your financial goals.

Holding Yourself Accountable

The biggest reason to create a financial planning essay is to hold yourself accountable. When your funding comes in, the essay is your point of reference to keep on track. Think of it as a map that shows you exactly where your money needs to go.

On the other hand, the essay also serves as a means to cushion the blow of any potential disappointment. Life happens, and sometimes when life happens you have to spend money. When this happens you can look to your essay to remember. Remember that the circumstances that set you back were unforeseen.

At the end of the day, all you can do is stick to your financial plan as best you can. It is okay to be a little tough on yourself when you misspend, but you should never beat yourself up over it either. Work your plan to the fullest of your ability. Only then you will be able to meet your goals.

4 Tips for Setting Your Financial Goals

Glass jars for storing money to achieve your financial goals

Whether you’re looking to buy a home or get rid of debt, you’ll need to set your financial goals. This allows you to have clear objectives that you are working towards in the short term and long term. So here are four money tips to help in setting your financial goals.

Clearly Define Your Financial Goals

The first step to setting your financial goals is specifying what you hope to accomplish. These goals must be specific, measurable, and have a set deadline. For example, paying off your student debt of $15,000 by the end of next year is a great financial goal to strive for. Setting vague goals, such as just having more money, will likely not give you an end goal to aim for, which makes it easy to lose sight of what you are working towards.

Make Sure Your Financial Goals Are Achievable

It is always good to challenge yourself, but setting financial goals that are too extreme means, you’re likely setting yourself up for failure. It is also common for those still starting out on their journey to financial freedom to become overwhelmed by setting too many financial goals at the same time. Therefore, it is advisable to take small but consistent steps toward your goals instead of trying to achieve them all at once. As you start achieving these smaller goals, you can progressively begin taking on more challenging ones.

Figure Out Your Budget

Before rushing into achieving your financial goals, you must first figure out where you stand in terms of expenses and spending habits. This means establishing a budget to track your spending and see where every dollar is going. A budget makes it easy to identify opportunities for saving money and how much you can have left over at the end of each month. From there, you can get an idea of what financial goals are doable and how long it would take to achieve them.

Monitor Your Progress

Since your goals will often have a set deadline or timeframe, you should constantly be monitoring your progress and adjusting your goals as you go along. When you go through a significant life change of any kind — moving, a new job, starting a family, or buying a home — that is a key time to re-evaluate your finances and revise your goals. And of course, there may be some unexpected bumps in the road that can hinder your progress. Those, too, require a new look at your money, how you are spending it, and how you are saving it.

Above all, keep one single goal in mind — retiring young? Buying land and building your own home? Starting your own business — and make sure your spending and saving habits are always pointed in that direction? Long-term planning, more often than not, yields long-term results.

Why Financial Literacy is Your Best Building Block to Wealth

Financial Literacy and debt consolidation

“Financial literacy” may sound like some heavy-duty brainiac term — but honestly, all it means is how you make your financial decisions based on what you know about money. The “literacy” part isn’t about reading; it’s about understanding basic concepts that are core to how money works. And understanding how money works is critical in making all kinds of decisions that have both short- and long-term impacts on your financial stability — and your life. 

Why do I need financial literacy?

You want to work on your financial literacy so that you are able to make informed, sound decisions about money in your life. But like many things in life, financial literacy isn’t a one-and-done kind of learning; you will keep working on it your whole life. 

And aside from the obvious benefits of being able to make smart decisions about money – keeping yourself out of too much debt, being able to be financially stable — there are also positive health ramifications. Since money is Americans’ number-one stressor, it’s obvious that if you can master basic money skills that you would also be lowering your stress. 

Financial literacy can help eliminate that stress, by giving you skills and knowledge that make it much more likely you’ll have positive financial outcomes in your life. Financial literacy means you’ll be able to understand both basic financial concepts (related to banking and saving) as well as more complex concepts (like credit and interest) that control your money and money outcomes. If you understand those concepts, you can make financial decisions more quickly, more easily, and with better results.

So what do I need to be literate about? 

As we said above, learning financial literacy unfolds over a lifetime, and there are many concepts involved. But there are five basic categories:

  • Banking: Being fluent in how checking and savings accounts work, a basic understanding of interest, and knowing how to write checks and use debit cards.
  • Budgeting: Managing and reviewing monthly income and expenses, with an eye toward long-term goals. Building a budget framework so you don’t live above your means.
  • Saving: Setting aside a portion of your income for both long-term and short-term goals, building and maintaining an emergency fund, understanding how interest rates affect your savings.
  • Credit & Debt: Understanding how borrowing money works and what it costs, from credit cards to loans, learning about debt to income ratio and credit utilization (which impact credit score), being able to evaluation repayment terms, debt solutions and forbearance.
  • Investing: Understanding different investment vehicles, from savings accounts to stock funds, brokerage accounts, robo-investing and more. Contributing to retirement savings. Understanding tax implications and benefits of different investments.

Becoming financially literate about all of the above doesn’t just happen as you live life. Smart money consumers will actively seek out information, ask questions (of bank employees, financial advisors, friends and family), and not worry about looking uninformed. To avoid learning skills that will ease your progress in life because you don’t want to seek assistance is short-sighted; almost everyone needs help in mastering the above concepts.

What if I can’t “afford” financial literacy?

If you think financial literacy is not for you, because you’re struggling with debt or student loans or making ends meet, you’re wrong. Taking time now to learn these concepts will help accelerate your forward movement toward financial stability. Consider spending some time on personal finance websites geared toward education, such as NerdWallet and PennyHoarder.

But if you are suffering a financial hardship right now, or struggling to meet monthly minimums on escalating credit card debt, what you need now is a clear plan to get out of debt.

How to Sell Stuff Online Fast

A person taking a picture of clothes to sell online

Whether you’re trying to get out of debt or boost your investment income for retirement, one of the best ways to achieve these goals is to resell items you no longer need.  Thanks to the Internet, it’s even easier to sell things online.  You’ll need to research which platforms would be the best and that would give you the most decent profits.  Make sure your items are in good or excellent condition, and you should research the average prices of what you’re selling so that you’re not overcharging but still charging enough to earn a profit.  Here are some cool ways to sell items online fast and achieve your financial goals.

eBay

This is one of the best ways to sell things online, and here are a few tips on getting sales quicker on this platform.  Start by including as many details as possible on the items you’re selling.  By doing this, the buyer won’t have as many questions, which speeds up the ability to earn profits faster.  Use the Best Offer feature on your listings since this helps buyers who want to negotiate.  Offer multiple payment options and avoid auction-style listings. Take high-quality pictures of your items.

Consider Which Items Sell the Best

Don’t waste time online selling items that people will not want.  It is better to research which items are the most popular among certain demographics and budget levels.  This helps you sell items faster online.  Brand-name clothing is always popular with online shoppers, and if you have outfits from the most popular designers, you’re likely to sell faster.  Other items that do well for online sellers include video games, electronic gadgets, kids’ clothing, furniture, toys, and sports equipment.

Use the Decluttr App

If you have a lot of gadgets that are in good condition, sell them through the Decluttr app.  All you have to do is look up the devices you want to sell then enter the barcodes in the app.  Then the app lets you know the overall value of your items and how much they’ll offer for your items.  After you accept the offer, they’ll send you a shipping label and you can pack up your items for shipping to them.

Try Facebook Marketplace

This is a neat way to sell items fast online.  Start by taking pictures of a certain type of item and then post the pictures and information to Facebook groups that sell specific types of items such as used books or used kids’ clothing.  It would be quicker to sell if you can do it locally and have the person meet you in a public place to pick up the items.  However, you have the option of shipping your items for a 5% selling fee.  

Customer Service Should Be on Point

Be sure to answer potential customers’ questions promptly as this helps you sell items faster.  Be concise with the information in your listings and the pictures should be clear enough for everyone to see.  Make sure the items are priced fairly and exhibit a professional attitude at all times. Offer products that promote sustainable lifestyle.

These strategies will be helpful in selling your items faster online.

Credit Card Debt, Student Loans, and Homeownership: My Goals For Sustainability in 2021

Brice Capital

Although the pandemic knocked me off track a bit, this year, I plan to continue with my efforts to live a more sustainable life. As I became consciously aware of the human impact on the environment, I was encouraged to reduce my carbon footprint. I wanted to do more to conserve natural resources and save the planet. Upon further research, I concluded that this started with my finances. 

Not So Sustainable Household

I was presently living with my parents, whose practices were far from environmentally-friendly. Despite my best efforts to make changes around the house, it barely made an impact. For every bottle, jar, or can I recycled, they threw ten times that in the trash. I’d turn off a light in the house, and my parents would turn on five. Not to mention, I was so far away from my job that I had to take two buses and a cab to get to work. 

Homeownership

As much as I loved my parents, I knew it was time to get a place of my own. I had some money saved up and figured it was best to buy a house. After carefully reviewing my finances, I realized that my debt was out of control. Between student loans and credit cards, my debt to income ratio and credit utilization percentages were so high that it impacted my credit score. Essentially, if I was going to become a homeowner and live a more sustainable lifestyle, I had to get my finances in order. 

Debt Consolidation

My credit cards had high balances and high-interest rates, which made them difficult to manage. If I was ever going to get them under control, I needed a viable solution. So, I visited BriceCapital.com for credit card debt relief. They offered low-interest rate loans to eligible applicants. The loan would enable you to pay off all your credit cards, leaving you with one affordable monthly payment to manage. The representative from Brice Capital assisted me in finding the best consolidation loan and repayment plan. It saved me a lot of money and helped me get on track with my credit card debt. 

Tackling Student Loans

The only other significant debt I had on my credit report was student loans. I’d deferred them for years creating higher balances and interest rates through the roof. I figured if Brice Capital helped me get my credit card debt in order, there had to be a similar solution for my student loans. So, I found an agency that allowed me to consolidate my student loans and essentially save more money. 

On The Right Track

It’s only been a few months since I consolidated my credit card and student loan debt, but I’ve already seen a difference. My debt to income ratio and credit utilization rates improved, causing my credit score to improve. I took the money I saved by working with Brice Capital and put it into an account to ante up the money I needed for a down payment on my new home. As long as I continue to be a responsible borrower, I should be able to start looking for a home in no time. 

Light At The End Of The Tunnel

I’ve started looking at the available properties within my price range just to see what was out there. Wanting to live a more sustainable life, I wanted to look for a place close to my job. That way, I could park my car and walk to conserve gas and help the environment. Believe it or not, I found several starter homes in neighborhoods with high walkability rates. They were also in communities that were dedicated to sustainability, which was a plus. 

Living a sustainable lifestyle isn’t easy when you live with others that don’t support the cause. As much as I adore my parents, embarking on my journey towards homeownership would enable me to reduce my carbon footprint. Brice Capital and other debt reduction opportunities allowed me to improve my finances and boost my savings to afford a home and lifestyle of my choice. 

Help the Planet and Your Pockets! Eco-Friendly and Creative Ways to Save Money

Eco-Friendly Ways to Save Money

Eco-Friendly Ways to Save Money

If we asked you what are some of the major issues of our society nowadays, what would you say?

We’re almost 100% certain you’d mention the economy and the environment, and you’d be right to say so. These are two well-known issues that affect most of us, but what some of us might not know is how to start fighting them. Thankfully, we have some answers for you!

Many people think that switching to organic living would be expensive. If you try to make optimal or smart use of the available resources, you may not only be able to conserve them for a longer time but also save money in the process. 

Keep reading and learn six creative and eco-friendly ways to save money

1. Eat Fewer Animal Products

Many people believe that being a vegetarian or a vegan is way too expensive and, for that reason, they continue to buy animal products on a regular basis.

Our challenge for you is that next time you go grocery shopping, you compare the prices of the vegetables and fruits with the price of meat. Quite different, aren’t they?

You don’t need to go fully vegan but eating less meat will help save the planet and your money.

2. Take Shorter Showers

Yes, we know how relaxing it feels to take a long, hot shower. But do you really need it? Even cutting your shower time by two or three minutes every day makes a difference – in the end, it all adds up!

And since we’re on the topic of showering, think about this: do you ever use the hot water tap without also using the cold one? If not, turning down your water heater is also a good idea. 

3. Grow Your Food

One of the best eco-friendly ways to save money is by growing your own food. However, your ability to follow this tip depends on how much space you have available at your place. If you have a small backyard, why not start planting vegetables that grow well in the weather conditions you live in?

If you live in a small apartment, don’t worry, you can still grow something you probably use on a daily basis: herbs! 

Not just vegetables, there are many other things that you can make at home to save money rather than to go out and purchase. Who knows growing your food or making your own beer to save some dough could turn into a fun hobby for you and your family. 

4. Shop at Second Hand-Stores

Fast fashion is one of the biggest producers of waste there is, with 85% of textiles ending up in landfills every year. Furthermore, this industry uses colossal amounts of water (it takes 2700 liters of water to produce one single cotton shirt) and emits 5% of global CO2 emissions.

The good news?

There’s a rising number of clothing stores where you can buy second-hand pieces that are both unique and affordable! 

5. Start Using Your Bike Again

The effects of global warming have become increasingly evident all over the world over the past years and one of the biggest contributors to this major issue is car pollution.

Considering the amount of gas that our cars emit, this isn’t hard to understand.

Yet how many times have you used your car when you could have perfectly ridden or even walked there?

Using your bike (or your feet) will help you reduce your eco-footprint, save money on gas and stay active. What else could you ask for?

6. Buy a Reusable Water Bottle

Single-use plastic is completely 2000 and late and we all know that by now.

So if you still buy plastic bottles, it’s time to change that! By purchasing a reusable bottle, you’ll help reduce the demand for single-use plastic and you’ll be saving money by drinking tap water instead of the often overly-priced bottled water.

Do You Know More Eco-Friendly Ways to Save Money and the Planet?

The tips we mentioned above are some of the most popular ways of helping the environment while also saving some bucks. But the truth is that there are plenty more eco-friendly ways to save money and the Earth!

Do you know of any? If so, let us know in the comments below.

And while you’re here, why not join our group and learn more about living a sustainable life?

The Different Types of Home Loans

types of home loans

different types of home loans

Are you in the market for a new home or maybe an upgrade from your current home? Before you go jumping with both feet into the unknown you should probably do a little research about all the different types of home loans that are out there nowadays for new buyers. Some of the jargon used in the descriptions of these loans can be confusing; while some may sound good they might not be right for you and vice versa.

Fixed-Rate Home Loans

Today we want to take a closer look into fixed-rate home loans. This type of home loan varies greatly from an adjustable-rate home loan. The fixed-rate loans mean you pay the same amount each month, each year, for the entirety of your loan. The adjustable rate means your mortgage rate can fluctuate from year to year depending on the bank and figures. Traditionally adjustable rate loans seem to be the better choice…in the beginning, when they begin to adjust and increase you could end up paying double what your payment started at.

This adjustment has been a problem for many homeowners; once the rates change it can double your payment if not triple it depending on how high the jump is. A fixed-rate home loan is one of the safest choices when it comes to home loans, because you will always know what your payment will be and if it does change with a fixed-rate loan the amount won’t be that drastic.

Different Terms

A fixed-rate home loan can be chosen with more flexibility. For example, NPBS feature-rich fixed-rate home loans come in 1, 2, 3, 4, 5, 7, or even 10-year increments. These time frames for repayment can vary depending on the institution that is taking care of your loan, some places will allow you to opt for a 15 or 30-year fixed-rate loan as well. Don’t let the fixed-rate loan title fool you, when you have some extra cash you can pay more onto the principal of your loan in order to repay it quickly.

When you take out a reverse mortgage it pays you, rather than you having to make monthly payments to your lender. How a reverse mortgage works is by allowing you to request reverse loan payments to be made to you on a regular basis or ask for one large payment all at once. By taking out this particular type of home loan, you can avoid having monthly loan payments. You won’t owe the balance back on the loan until you move out of your house. In the event that you pass away, your family can choose to allow the house to be sold, in which case the lender would keep proceeds equal to the loan balance and any leftovers would go to your family. Alternatively, your family can pay off the mortgage themselves and keep your home.

The Bottom Line on Home Loans

It cannot be stressed enough to be smart when you are purchasing a new home, do your research when it comes to types of home loans as well as all the different institutions that can provide loans, and you might have better luck at a bank a little further than your current location. Bigger cities or towns tend to have better home loan rates, so browse around before you settle on a final home loan.