Essay Example on Creating Financial Stability: A Short-Term Action Plan

Introduction

The financial action plan is the weapon every adult requires to attack this economy. People should have financial goals that are attainable by a set of financial strategies. The strategies are plans set to ensure that the goals are reached. The goals should be realistic and attainable under a short period. Adults with children and dependants should have a financial action plan to ensure the financial security of themselves and those depending on them.

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Short-term Monetary Goal ( Less than two years)

During the first two years, I want to buy a farm and carry out modern farming at around $150,000. Given that I have more than one car, I will sell the fuel-consuming car at $110,000 and remain with only one car that consumes less fuel. Saving on fuel and space will help me raise $5,000. I will convert my garage into a store where I will hire the space to local vendors for $10,000. Hiring the space will enable me to earn extra funds that are necessary to save. I will enroll my children in boarding schools once summer is over so that I will reduce the number of people living in my house. Enrolling the children to boarding schools will reduce extra expenses that arise from facilitating their studies such as transport and help me save $10,000. Living with my spouse will be convenient as we share the same dream therefore we will move to a smaller house that accommodates us and an extra room that the children will share once the schools are closed. Moving to a smaller house will enable us to raise $10,000.

Intermediate monetary goals

Once I have opened my farm and supplies business, I intend on buying distribution cars to help me distribute my products to other towns to help me increase my clientele to have around $750,000. To achieve this; I require to earn annual incomes of $180,000 for three years that will enable me to gain $540,000. This $540,000 will arise from profits made on the smart farm from sales of my produce. Further hiring of some parts of the farm to other farmers will enable me to earn $50,000 per year for the three years that will equate to$150,000. The last $60,000 will come from dividends of my welfare shares that I will earn at the end of the year. Increasing the fleet will enable me to satisfy the needs of my customers over a large geographical area. This will help me increase the number of sales hence a proportional increase in my profits.

Long-term Monetary Goals

Once I have increased the number of cars supplying my goods and investing in other parts of the World, my long term goal is to have a multi-national company that covers the entire globe and supplies food to almost every household in the world which will cost around $15,000,000 to bring to work. Once I have the company, I will engage in foreign exchange and real state estimated at around $15,000,000. I will also buy a bigger home for $150,000 and cars for my children who will be in college and high school at $30,000. I will want my children to study at high-end colleges such as Harvard and MIT where they will gain the highest quality of education and skills marketable globally for $50,000. I need all this to happen in the next ten years. The money will fully come from sales of the global.

I also want to engage in real estate so that I can at least cover two of the three basic needs. Investing in the basic needs means that as long as the quality and price are good, we will have full-time customers as what we produce will have customers at all times. This is a ten-year goal that is achievable through funds from profits made from Kito Farm. Kito farm will contribute annual incomes of $3,023,000 which will be used to help invest in these other adventures that will secure my financial future.

Conclusion

We should engage ourselves in income-generating activities such as that in the occurrence of a pandemic, the income still flows in. However, these plans should be made in the early stages of life let’s say the mid-20s to ensure we settle economically early enough

Reference

Carstensen, L. L. (2009). A long bright future: An action plan for a lifetime of happiness, health, and financial security. Broadway Books.