Financial Need - Establishing Financial Priorities

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Financial Need Most of my financial priorities revolve around professional growth as a pharmacist, establishing myself financially as an individual, doping a few investments, including starting a pharmacy and other personal development things, i.e., things that are likely to improve on my comfort as an individual. As such, the financial needs include getting an insurance coverage( endowment policy) that is tailored towards future financial stability, the projected monthly expenses that I will be incurring, settlement of the student loan and professional development goals, and an investment which will be a pharmacy stat-up.

Financial needs Insurance coverage I must take a life insurance coverage of about $250,000 through work and contribute about $250 every month. I will go for an endowment insurance policy to be compensated after a specific period, which will greatly boost my investments and other financial plans that I would be having during that time.

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Expenses On average, I will have to spend approximately $11,000 per month on necessities and living expenses such as entertainment, utilities, basic items like property tax, food, and other costs. These are the costs that will be incurred on a monthly basis. However, the chances are high that there will be variations depending on the prices and the inflation rates (Gitman, Joehnk & Billingsley, 2010).

Student loans As a student, I have been a beneficiary of student loans, so it will be important to prioritize paying it as soon as I start generating some cash flows. However, I still intend to continue to be a beneficiary of the student loans because I want to continue with my advancement as a pharmacist. As such, I will be obliged to be paying about $250 every month in order to be able to reduce the loan that I already have and be eligible for another student loan that will help me carry on with my studies at my own convenience (Gitman, Joehnk & Billingsley, 2010).

Investments This is where much of my effort will go. As a pharmacist, I would like to establish myself in this sector and even start a robust business in the pharmacy industry. Pharmacy’s mission will be to provide our customers with the best prices for their prescription medications.

Our convenience and services will exceed the expectations of our customers. As such, we will need $115,000 to start, and we will be able to pay the investment back at the end of year 4. There will be various start-up equipment costs, i.e., three computer terminals, office equipment including desks, file cabinets and chairs, main computer server with a laser [printer and a back0up system, start-up inventory, store-front build-out, rent, utilities, insurance, among other costs.

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The start-up expenses will be about $24,100. These will include website development $1,000, expensed equipment $4,000, store-front build out $15,000, insurance $300, telecom system $400, legal $1,000, rent $2,000, utilities $400. The sources of the funds are expected to be as follows: seed funding $50,000, John $51,000, and friends and family $82,100.

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Reference Gitman, L. J., Joehnk, M. D., & Billingsley, R. S. (2010). Personal financial planning. Cengage Learning.