Financial Plan

Scenario
Three months have passed since you created your initial financial plan (for Assessment 2). A friend who is studying to become a financial advisor recommends that you check in on your progress toward your savings goal. She volunteers to help you conduct a financial analysis of your personal budget over three months. You meet with your friend each month to go over your analysis. In her studies, she is learning that people understand budget concepts better when they are represented as visuals, so she asks you to create some.

In this assessment, you will make three monthly budgets. Your income increases each month, the formulas for these increases are already in cells H7 and M7 of the Assessment 3 Excel Template [XLSX]. Additionally, in the Month 2 Budget and the Month 3 Budget, some cells (H16 and M12) have been filled in with a formula to represent an unexpected expense in that expenditure category for the month.

Do not change these cells.

For months 2 and 3, you will need to reallocate your budget around your increased income and unplanned expenses.

Instructions

Using what you have learned about budgeting, Excel, and creating data visualizations, complete the Assessment 3 Excel Template [XLSX]. Then, complete the Assessment 3 Word Template [DOCX] to explain and reflect on the process and results of your personal financial analysis Remember to turn in both completed templates once you are finished.

For this assessment, complete the following steps:

Step 1: Use the Assessment 3 Excel Template [XLSX] to complete this and next step. Consider the income and expenditures from Assessment 2 to use as your starting point for your Month 1 Budget. Then complete the budgets and the savings goal progress table in the template.
Scoring guide criteria: Create a personal financial analysis with three monthly budgets and progress toward a savings goal.
Remember, since this is a monthly budget, you will need to divide all of the values from your Assessment 2 annual plan by 12. After you have done this, you will notice that embedded formulas show that your income increases in Months 2 and 3 because you received additional unexpected income from other sources.
You will also notice an increase of 400 dollars in your “Health Care” expenditure in Month 2 as the result of an unexpected medical emergency, as well as a 325-dollar increase in your “Transportation” expenditures in Month 3 because of an unplanned repair expense.
Step 2: Create three appropriate graphs or charts (one for each month) in Excel to show the findings of your personal financial analysis. Each should show how you have allocated your income among the various categories. Additionally, create a graph that shows your progress toward your savings goal based on the information you input into the Financial Goal Savings Progress table. Select the type of graph that you think would best illustrate your progress.
Scoring guide criteria: Create appropriate graphs to illustrate the findings of a personal financial analysis.
Step 3: In the Assessment 3 Word Template [DOCX], explain why you chose these particular graphs or charts. How do the graphs or charts you created help someone understand the financial data?
Scoring guide criteria: Explain how selected graphs are the best choice to communicate financial information.
Step 4: Look at the results of your financial analysis and explain your key findings. These should include overall progress toward savings goals, potential changes in your budget that can be made in the future, and possible economic or life impacts that may affect your budget in the coming year.
Scoring guide criteria: Explain the results of a personal financial analysis, including overall progress toward savings goals, potential changes in the budget that can be made in the future, and possible economic or life impacts that may affect the budget in the coming year.