Financial Planning Essay Example | Topics and Well Written Essays - 250 words - 1

Financial Planning - Essay Example There may be some additional cost attached with the purchasing of house is that cost of furniture fixture, electricity cost, maintenance cost and cost of decorating the house. The use of credit card incurs some cost as interest rate. As the interest rate in the credit card is very high like interest rate on the credit card of Shawn is 18% and Mary is 15%. The use of other means of payment like cash payment reduces such costs involved. Thus, they need to reduce the usage of credit cards in borrowing goods and services because the high rate of interest leads to increase in their expenses in the income expenditure statement. For this reason, if they reduce the usage of credit cards then they will be able to save the amount of interest. Shawn wants to sell off his truck any buy something new. From the primary consideration of buying vehicles, it can be said that buying new vehicles is always good though it costs high but the quality of the vehicle is brand new and Shawn can easily repair or maintain the car from the company service center if it’s new. However, if he wants to buy a used vehicle then the cost will be low as after one-year usage of any vehicle, its cost decreases. However, here he needs to consider two things- one is that the age of the vehicle. He should not purchase too old vehicle, which is having low cost because it might not be in a good condition. Second is that only age of the vehicle cannot be the measurement factor for the condition of the vehicle depends on the Km. it has run and depending on the miles or Km it can be decided that whether the vehicle is in good condition or not. Some other consideration in the purchase of a used truck is the property transfer cost and the service it w ould incur to make the used truck running and in a good condition. If the costs involved are much larger or near to the cost of a new truck, he would purchase the new one. Nevertheless, buying an old truck