Summary of Tedx
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The video watched is called One Life-Changing Class You Never Took: Alexa von Tobel at TEDxWallStreet. The video was uploaded on December 4th, 2012 by TEDx Talks. What I found most important about her presentation is the basic financial principles. Alex Von Tobel has used Jessica as a perfect example to teach and educate on the basic financial tips that we should know. These are based on five major decisions that Jessica could make on financial management.
The first decision Tobel has talked about based on the decisions of Jessica, only if she is lucky to get a job immediately after her graduation is budget. Tobel has stressed on the recommendations of good financial planning when writing a budget. This is because Jessica could spend more on luxury activities not knowing that good financial management recommends that 50% of her salary should cater to essentials, 30% on lifestyle, lastly 20% for future savings. Another decision Jessica could make from the presentation by Tobel is renting an expensive apartment. According to Tobel, this is a very wrong idea because it is only increasing amount of debts and bills and ignores the need for savings. Connectively, in her presentation, she condemns the act of accumulating debts and increasing bills instead of savings, and leaves a question of, what if you lose your job tomorrow or gets any type of an emergency? Lastly, Tobel concluded by encouraging on the importance of learning more about finance skills, because it does not only prevent cases of bankruptcy but also promotes savings.
The implementation strategy I can recommend based on the different financial situations, needs, and goals is formulation and planning. This is because planning and formulation are vital factors in financial management. For instance, before any financial implementation, formulation and planning are always essential factors that must be considered to meet the right standards on allocations and budgets. Similarly, they ensure savings and other major concerns are solved before settling bills and minor debts (Brounen, Koedijk, & Pownall, 2016). Additionally, one should have the right objectives, goals, and formulation policies. This will ease the implementation process and also control their spending rates.
References
Brounen, D., Koedijk, K. G., & Pownall, R. A. (2016). Household financial planning and savings behavior. Journal of International Money and Finance, 69, 95-107.