|Type of paper:||Essay|
|Categories:||Problem solving Money|
Solving Personal Problems
The five-step model of problem-solving is applied with the purpose of finding the best solution after having weighed all available options. The process begins with identifying the problem and listing all options of resolving it. Afterwords, advantages and disadvantages of each alternative are analyzed, which further leads to selection of the best suited option. The last step is evaluation of the results of implementing the solution.
One of my main problems is managing finances well. In most cases, I tend to spend too much on things that are not necessary. I am worried about the debts that keep accumulating every month because I spend more than I save.
Alternatives to solving financial problems are listed below.
Increase spending awareness I should become cautious and buy only the things that I need urgently.
Create a budget plan it will guide me to decide how much I want to spend on goods or services.
Track spending I should know how much I use to buy a particular product or get a service.
Advantages and disadvantages of each alternative are the following:
Increase spending awareness the advantage is that it improves judgment and prevents bad spending habits while its disadvantage is that it requires me to maintain a delicate balance.
Create a budget plan the gain is that it provides essential principles for action and coordination while its drawback is that it will limit me from getting particular things.
Track spending the benefit is that I will know where all my money has gone while its shortcoming is that it is tedious to keep the track.
The solution to the problem is saving through the budget plan as it will enable me to become financially secure. Also, it may help in times of an emergency and provide me with a sense of social security. Depositing money in saving accounts or banks that pay interest is the best solution to solve my financial problems. The money to be deposited will come from the amount not spent on things not urgently needed.
For the past two months, I have adhered to my budget plan and made substantial savings in the bank. I believe that the solution works well in that I will now have financial security. The solution is working well in a way that in the case of out-of-pocket expenses, I will retrieve some amount from the bank to avoid debts.
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