Essay about Planning Model : A Woman By The Name Of Alice

807 Words 4 Pages
S.M.A.R.T. Planning Model
A woman by the name of Alice recently graduated from college, and wants to focus on producing enough income to sufficiently meet her cost of living and address the student loan debt she has acquired. Over the next ten years, though she would like to shift her focus to having a family. But in order to do so she will need to buy a home and address the need to save for her child 's education expenses. Therefore, her income will need to cover the increased expenses plus produce an additional surplus which will need to be saved in order to build the necessary assets. In addition to her immediate goals, Alice 's long term ambitions are to retire as soon as possible, living off her accumulated assets, and then to maybe travel in a sail-boat around the world. In order to meet these goals, she will have to focus her efforts to sufficiently provide enough resources that can be utilized in her retirement years. How should Alice apply the S.M.A.R.T. Planning model to her financial goals. According to the text book Personal Finance, by Rachel Siegel and Carol Yacht; the S.M.A.R.T.; the planning model illustrates that a person must address each goal as being Specific, Measurable, Attainable, Realistic, and Timely. (2009, p. 18)
To illustrate the financial planning process Alice must define her goals in an order of priority. They are as follows; shorter-term goals (1-2 years); provide for living expenses and reduce debt. Her intermediate goals (2-10 years);…

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