Describe the five steps in the personal financial planning process
What will be an ideal response?
Answer:
Step 1: Evaluate your financial health by examining your current financial situation. Look at your whole financial picture. Keep records and determine your net worth.
Step 2: Define your financial goals by describing what, when, and how much you want to do. Written goals will draw you to them.
Step 3: Develop a plan of action to reach your goals. Don't just think about goals — decide how you will carry them out! Let flexibility, liquidity, protection, and minimization of taxes guide your plan.
Step 4: Implement your plan by carrying it out — just do it! Stick to your plan.
Step 5: Review your progress, reevaluate, and revise your plan periodically and as needed.
You might also like to view...
All necessary amounts to prepare the balance sheet, including ending retained earnings, can be found in the Balance Sheet columns of the work sheet.
Answer the following statement true (T) or false (F)
Which of the following documents defined accounting as a service activity whose function is “to provide quantitative information... that is intended to be useful in making economic decisions”?
a. “Objectives of Financial Statements” (Trueblood Committee Report) b. “Basic Concepts and Accounting Principles Underlying Financial Statements of Business Enterprises” (APB Statement 4) c. “A Statement of Basic Accounting Theory” (ASOBAT) d. “Statement of Accounting Theory and Theory Acceptance” (SATTA)
Clabber Company has bonds outstanding with a par value of $107,000 and a carrying value of $101,500. If the company calls these bonds at a price of $98,500, the gain or loss on retirement is:
A. $3000 loss. B. $5500 loss. C. $8500 loss. D. $3000 gain. E. $5500 gain.
The managers at EarthGreen Technology are currently developing strategies for the company's new products and setting objectives for its business units. These managers are engaging in the management function of
A. planning. B. forecasting. C. outsourcing. D. organizing. E. staffing.