In this essay, using the S.M.A.R.T. planning model (specific, measurable, attainable, realistic,
and timely), I will evaluate the Alice's goals of paying off student loan, buying a house and
saving for children's education, accumulating assets, retiring, and traveling around the world in
a sailboat. I will complete my evaluation with a comment.
To achieve these goals, Alice has to identify the timing of her goals. For example paying off
student loan is a short term goal, but accumulating assets is an intermediate goal and then buying
a house (paying off the house completely) and saving for children, along with the retiring plan
are long term goals.
To consider the S.M.A.R.T. model, Alice has to be realistic. Alice has $5,250 assets
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She can achieve her short term goal of paying student loan, but she won't be able to accumulate
any assets, this option is not realistic and attainable. In order to do that, she has to increase
income and decrease expenses. To achieve her long term goals, Alice has to be able to
accumulate assets which with her current financial situation and the information that we have is
not attainable.
To evaluate Alice's situation, we know that any decision that Alice makes, will be according to
her family structure, age, health and her career choice. For example, she will consider if she will
inherit any assets from her parents (for her long term goals) and she considers herself young and
healthy and she hopes to increase her income by getting more experience at her current job.
Alice has an alternative of reducing expenses, but this option puts her life in a difficult position.
Alice can think about other alternatives, taking a second job, which has no risk involved, or go to
Las Vegas and gamble for winning the money she owes which involves a risk of going deeper
into debts if she loses. The explicit and implicit costs of getting a second job are in order
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If she chooses the second job option, she will preserves any alternative that she would consider
in the future, because there is no risks involved. However, if she chooses the trip to Vegas, if she
loses, all her alternatives will be eliminated since she would go deeper in debts. Here we realize
that a risk is not just an option, but also a cost, and any available choice that someone might
preserve is a benefit.
In conclusion, when we consider Alice's feasible choices, and then we calculate the benefits,
explicit, implicit and strategic costs of each of her choices, we realize that Alice in general is not
in a bad shape. In my opinion, she should continue the way she is without any further action till
she pays off her student loan completely. Also, she does not have to buy a new car till then. The
second job will put too much pressure on her health that may affect her ability to continue her
current carrier path. Also the Vegas trip for winning money because of the high risk involved is
completely out of the question. After a few years when she gets rid of student loan, she can
easily plan for her intermediate and long term goals. After all, she is in better position than
due to fears that her agent will lay her off. Since sharing the role as provider for her
amount up front and she will be responsible for any additional higher cost incurred from a non-
have to train as a doctor to get the support she needs. In her studies
She won’t be able to pay off the debts her family owes and their house will be taken away from them. This is her main reason for working away from home to begin with. She must decide what to do. This is not easy for her because if she chooses her health her family loses their home. If she chooses to help her family, she could
concerned about risking her life savings on a venture that might not succeed or become profitable enough.
The optimism comes from looking at how she scrapes together the money it took to go to
5. She needs to start working more hours to be able to save some money for retirement and to be able to afford going back to school.
insurance. Her house was only a couple years old when she purchased it so maintenance costs are low. She
could decide to seek employment and start her own career, or she could be making a more radical
being enough, and getting her scholarship application denied. There were also health and health care factors
She has a financially supportive husband who works to support both her and her children. This source of income will be beneficial for future health needs and other services they require and will ease the financial burden for them a bit.
could become very frustrating when she has every reason to get a job, but cannot.
Financial support has played an important role for college students, especially for university students, whose family could not support their education after they have graduated from high school. Due to this situation, students have to go through a lot of problems with their tuition fees to be able to continue with their education. They always need a large amount of money besides paying for the tuition but also for living, and students have to go through a lot of problems with their tuition fees in order to be able to finish their career on time and earn a better living in the future. Some students will choose to go to work part time while at school, so they can pay for their fees and their own expense, such as gas, foods, and clothing. On the other hand, most of students will choose to take out loans from somewhere else, such as the bank or federal loans. This way, students who choose to take out a loan could focus on their education without worrying about how to pay for their fees. It is very important for students to acknowledges and be aware of the different types of student loans, and all the requirements before students decide to obtain a loan. Because of the raise in tuition leads to the existence of the student loan debt is a burden that is a financial impact on lifestyle changes, such as postpone couples to get married, to have children, to buy a house and to save for retirement.
To help Ms. Porter make better decisions when it comes to money and feel in control of her finances. - Ongoing
Make sure she knows how much money she would actually get the next month. I would also include getting a loan which she could pay off monthly but at a reasonable amount. Her finances in general are crazy because she allowed her credit card to be used so much that she couldn’t pay for something when it became an