Financial check up report - Essay Example

Lecturer: Tracking Sheet Tracking my financial expenses helps me to account for every dollar that I spend in anyof my expenses. In my tracking sheet, I learned that I have more expenses than income, which is not a good idea of budgeting. Having the idea of more expenses than income, tracking my financial situation helps me to know how well I should spend my finances. Net worth StatementThe net worth statement gives me an idea of how much I am worth as an individual. Furthermore, it gives a clear picture of how well I should fix my expenses to fit my budget with regard to my assets.

The net worth statement teaches me on the importance of taking care of my expenses. Income and Expense StatementThis shows how well I can manage my expenses in order to meet my income. My total expenses are lower than my income. This means that I am able to save part of my income. Lessons from this statement is that one should manage his expenses in such a way that it allows him to have savings for every income. Financial RatiosThe financial ratios show ones ability to repay any debts that he may incur.

My basic liquidity ratio is 4.5666, which is higher than the recommended 3.0. This means that my liquid assets are able to repay any of the debts that I may have. This shows that one should always be in a financial situation that is able to support him in cases of debts. This is to say, the liquid assets of a person should always be able to settle debts without posing threats to the financial situation of a person. Revolving SavingsMy revolving savings shows that my spending for my fixed budget was financed from my savings.

However, the amount set aside for my fixed budget was not fully spent since there was arrears amounted to my savings. This teaches me that one should always set aside a given amount to cover for regular expenses such as insurance. Retirement NeedsThe annual saving for retirement needs should always meet the budget expectations. My retirement saving plan, according to the statement, meets my budget expectations. In the statement, the amount needed for saving expenses is much higher than the amount needed to realize the retirement goal.

This means that, my saving plan will meet my retirement goal. Lessons learned from this is that one should always be prepared to realize his goals. Life Insurance NeedsThe total expenses in life are much higher than the total income replacement. This is where life insurance becomes essential. Getting into an insurance plan, according to the statement, means that I would be able to take care of my expenses in life at a lower value. The insurance needed is much lower than my total expenses, thus, my expenses will be covered at a lower cost.

This teaches me that I should get into an insurance plan since my net income might not be able to cover all my expenses in life. Financial GoalsMy financial goal provides a picture of my tracking statement. This shows that I have been spending more on things that are not necessary. With the proper financial plan, I could be able to save much more by spending less on certain commodities. Going into short-term financial goals will enable me to have a successful long-term financial goal, for instance, investment.

Lessons from this statement is that one should always make future financial plans regardless of the financial situation. Monthly budgetThe statement shows that my monthly income is much higher than both my fixed and variable expenses. This means that I am cable of having savings. This teaches one to always budget to a range that would allow him to save some amount for any emergencies. ConclusionThe overall financial statement shows that my financial situation is within the recommendation for a good financial situation.

This means that my financial situation is able to meet all the expenses without compromising the saving and debt culture. My financial situation is also capable of financing any investment plans without compromising the income and expense situation.