1. Chapter 4 Financial Decisions and Planning

2. What Is Financial Planning?
Financial planning is a process of looking at your current financial situation and thinking about your future.
A financial plan has personal and financial goals along with steps and a timeline.
Review and update your financial plan periodically.
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3. What Is Financial Planning?
Step 1: Gather financial information
Step 2: Analyze information
Step 3: Set goals
Personal and financial
Step 4: Develop a timeline and benchmarks
Step 5: Implement and evaluate the plan
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4. Financial Plan (One Goal)
Net worth on April 1, 20--: $525.56
Personal Goal
Financial Goal
Benchmarks
Timeline
Live in my own house in the country.
Buy a house in the country.
Save money for a down payment ($12,000)
5 years
Set aside $200 per month
Once per month
Open a separate account for money saved
April 8 (next week)
Talk to a mortgage broker to get prepared
Make an appointment for April 15
Get a job that provides enough income to make monthly payments
2 years
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5. Where Can You Get Good Financial Advice?
Financial planners
Financial experts
Newspapers and magazines
Seminars and workshops
Financial websites
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6. How Can You Protect Financial Resources?
Deal only with financial advisers you know and trust.
Keep good records.
Verify account balances regularly.
Guard passwords.
Be aware of phishing.
Guard against identity theft.
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