Define the financial planning process
The financial planning process includes a series of steps that describe how spend your money,
investments, and other assets can best be used to achieve financial goals. Most financial plans
focus on savings, performance, and estate planning objectives to develop a road map to financial
freedom.
List the elements of a good financial plan.
A good financial plan arrangement ought to incorporate the accompanying: Setting objectives,
which is a thought that an individual means to accomplish. The assessment of the current
circumstance is to confirm the financial situation and financial statement at the time of planning.
Decisions should not be set in stone and assessed.
Identify and discuss the three most important personal factors and the three most
important economic factors that affect your financial planning decisions
THREE MOST IMPORTANT PERSONAL FACTORS
Age – I know that age brings the reason, but age is a very important factor to consider because
when I’m making investment decisions, At some point I will be the newest to this business
model and I won’t know if the investment will be profitable or not.
Dependents – Dependents for me include a big budget. In my case my country has been under
crisis for 4 years, I can’t can be dependent because this will include feeding myself buying my
stuff. But I decided to stay at mom’s house.
Employment– My employment status is also an important consideration, just because I’m an
unemployed person and that affect my financial planning I will no longer buy my needs
THREE MOST IMPORTANT ECONOMIC FACTORS
Inflation – This is an increase in the general level of prices in the economy. When prices are
low, we tend to buy more, but when they are high, we tend to buy less. This means that inflation
affects purchasing power.
Business Cycles – It’s not always that the economy can grow positively. There are times when
the economy contracts and others when it develops or even in worse scenarios when it can face a
prolonged recession being the depression (Siegal & Yacht, 2009). At this time there is no growth
in the economy, the currency becomes weak and this affects the whole economy.
Interest Rates – Interest rates decide how organizations acquire and loan to the financial area
and other credit establishments as far as rates. At the point when loan fees are high, they
influence our acquiring.
.
Reference:
Siegal, R. & Yacht, C. (2009). Personal Finance. Saylor Foundation. Licensed under Creative
Commons CC BY-NC-SA 3.0.
The financial planning process includes a series of steps that describe how spend your money,
investments, and other assets can best be used to achieve financial goals. Most financial plans
focus on savings, performance, and estate planning objectives to develop a road map to financial
freedom.
List the elements of a good financial plan.
A good financial plan arrangement ought to incorporate the accompanying: Setting objectives,
which is a thought that an individual means to accomplish. The assessment of the current
circumstance is to confirm the financial situation and financial statement at the time of planning.
Decisions should not be set in stone and assessed.
Identify and discuss the three most important personal factors and the three most
important economic factors that affect your financial planning decisions
THREE MOST IMPORTANT PERSONAL FACTORS
Age – I know that age brings the reason, but age is a very important factor to consider because
when I’m making investment decisions, At some point I will be the newest to this business
model and I won’t know if the investment will be profitable or not.
Dependents – Dependents for me include a big budget. In my case my country has been under
crisis for 4 years, I can’t can be dependent because this will include feeding myself buying my
stuff. But I decided to stay at mom’s house.
Employment– My employment status is also an important consideration, just because I’m an
unemployed person and that affect my financial planning I will no longer buy my needs
THREE MOST IMPORTANT ECONOMIC FACTORS
Inflation – This is an increase in the general level of prices in the economy. When prices are
low, we tend to buy more, but when they are high, we tend to buy less. This means that inflation
affects purchasing power.
Business Cycles – It’s not always that the economy can grow positively. There are times when
the economy contracts and others when it develops or even in worse scenarios when it can face a
prolonged recession being the depression (Siegal & Yacht, 2009). At this time there is no growth
in the economy, the currency becomes weak and this affects the whole economy.
Interest Rates – Interest rates decide how organizations acquire and loan to the financial area
and other credit establishments as far as rates. At the point when loan fees are high, they
influence our acquiring.
.
Reference:
Siegal, R. & Yacht, C. (2009). Personal Finance. Saylor Foundation. Licensed under Creative
Commons CC BY-NC-SA 3.0.
