BA107 Personal Finance Shelby Johnson Case 1

Personal Finance

BA107 Personal Finance Shelby Johnson Case 1

With Shelby and her situation described on page 30, she does not have that many financial choices to choose from. Worst case scenario, Shelby would be talking with her parents on some decisions that have to be made like whether or not she can move back home to ease a bit of her financial situation. Paying debt by creating more debt is never a good idea. Maybe Shelby and her friend can find a bigger place and take on an additional roommate. There aren’t many choices here. Shelby does not have any real collateral that would make a huge difference in her financial situation so I feel she shouldn’t’ think about selling anything.

Shelby should really sit down and reevaluate her current situation. She should make up in her mind if going to school while working is best for her. It does not look like she is saving much so she is living pay check to pay check. I am wondering if Shelby is taking course that will help her with her current job while she is in pursuit of her long term goal owning her own business. Shecan work on getting a promotion at her current job by taking career development course. I think she needs to sit down with her supervisor to discuss this. Is there enough time for Shelby to take on another job? Sometimes we have to sacrifice now to be set for the future. If Shelby can take another job or even ask for more hours at her current job, I think this will help. However, if it interferes with her schooling then that option needs to be looked over.

Shelby can try calculating the time money value of savings goals. I see she has some money in her savings. Maybe this will also give her insight on what route she must take to accomplish her ultimate goal of owning her own business and not having to use her credit card to make ends meet. She is still in college she can also figure out when she will graduate and calculate what type of income her career field will make 3 to four years from now.