Significant Financial Goals

People make many financial decisions in their life time. Sometimes the outcomes of people’s financial decisions are great, but sometimes there are devastating. However, most individuals have a financial goal to accomplish in life. In this paper I am going to state a time when I decided to make a significant financial decision by using the Financial Management Model. I will also explain about my short, medium and long term goals and how my values affect these goals. Last year I decided to make a significant financial decision because I wanted to pay off some credit cards debt that was charging me a significant amount of money on interest. I did not know how to get rid of the credit cards debt. However, I found out that I had equity in my house and decided to refinance it and take money out. This process was difficult because I did not want to lose my home for making a move that I could regret in the future. …show more content…
I started to investigate about the options available by refinancing my house. I consulted a personal banker from the bank where I had my mortgage payment; I discovered that I had $60,000 in equity. So I started the process with a personal banker from the bank where I had my mortgage. My goal was to lower my interest rate from 4.8% to 3.8%. In addition I wanted to change my FHA loan to a conventional loan so I did not have to pay the insurance required by the FHA loan. Lastly, I wanted to withdraw $12,000 to pay some of my credit cards debt. Financial management requires critical thinking and discipline action (Goldsmith,