Managing Finance Assignment

The establishment of material wealth and an increase in financial prosperity are objectives which most people desire to achieve. Financial security gives an opportunity to fulfill broader family and community responsibilities and to realize broader ambitions, establishing a better future for those who depend on us. Greater wealth helps to introduce greater security for our parents and greater opportunities for our children (Daniell, 2006). The majority of people spend their lives earning money, but they rarely plan how to utilize the accumulated capital efficiently. According to Crumbley & Smith (2002), “most people are financially unprepared for the retirement when they reach retirement age”. That is why it is essential to start planning for the retirement early and the best way to do it is through personal financial planning, which helps to identify personal financial goals and develop the proper tactics to reach them.

People who have not yet retired should think of preretirement plan, which helps to determine how to reach a retirement income aim (Stovall & Maurer, 2011). The most crucial part of it is to save enough for the retirement when there are many obstacles such as a rental, a mortgage, and a down payment on new house to pay, furniture to purchase, renovation to made, cars to finance, children to raise and the whole world to explore. However, one should bear in mind that people tend to live longer these days. The latest statistics revealed in Kazakhstan illustrates that the average life span for men and women in 2012 is 69 and 74 years respectively, and in future it is expected to increase.