1. Business Math
Chapter 10

2. 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

3. Personal Financial Planning
Chapter 10

4. 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

5. 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

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

7. 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

8. 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

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

10. 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

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

12. 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.

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

14. Personal Financial Planning
Chapter 10

15. Personal Financial Planning
Chapter 10