Business Math Chapter 10

Personal Financial Planning Chapter 10 personal financial planning – arranging to spend, save and invest money to live comfortably, have financial security, and achieve goals. goals values liquidity service good consumer interest time value of money principle future value annuity present value

Personal Financial Planning Chapter 10

The Financial Planning Process Personal Financial Planning Chapter 10 The Financial Planning Process Determine your current financial situation Develop your financial goals Identify alternative courses of action Evaluate your alternatives Create and use your financial plan of action Review and revise your plan

Personal Financial Decisions Personal Financial Planning Chapter 10 Personal Financial Decisions Benefits of Planning Debt avoidance and reduced dependence on others Increased effectiveness in managing financial resources A sense of freedom from financial worries Improved personal relationships

Personal Financial Decisions Personal Financial Planning Chapter 10 Personal Financial Decisions Determine Your Current Financial Situation Savings Monthly Income Monthly Expenses Debts

Developing Personal Financial Goals Personal Financial Planning Chapter 10 Developing Personal Financial Goals Short-Term Goals Intermediate Goals Long-Term Goals One year or less More than five years Two to five years

Developing Personal Financial Goals Personal Financial Planning Chapter 10 Developing Personal Financial Goals Tips for Setting Your Financial Goals Be realistic Be specific Know what type of action to take Have a clear time frame

Influences on Personal Financial Planning Chapter 10 Influences on Personal Financial Planning Section 1 Financial Decisions and Goals Personal Situations Life Situations Economic Factors

Influences on Personal Financial Planning Chapter 10 Influences on Personal Financial Planning Section 1 Financial Decisions and Goals Economic Factors Market Forces Financial Institutions Global Influences

Personal Opportunity Cost Personal Financial Planning Chapter 10 Personal Opportunity Cost Personal Resources Require Management Health Knowledge Skills Time

Achieving Your Financial Goals Personal Financial Planning Chapter 10 Achieving Your Financial Goals Strategies Obtain financial resources. Borrow wisely. 1 5 Plan how you will spend your money. 2 Invest to increase current income and for long-term growth 6 3 7 Spend wisely. Manage risk. 4 8 Plan for retirement. Save on a regular basis.

Personal Financial Planning Chapter 10 Opportunity Cost An opportunity cost is what you give up to get something else. Source: www.collegeboard.com

Personal Financial Planning Chapter 10

Personal Financial Planning Chapter 10