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5 Cards in this Set
- Front
- Back
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Process of managing money to achieve personal economic satisfaction.
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Personal Financial planning
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Advantages of personal financial planning
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1) Increased effectiveness in obtaining, using, and protecting your financial resources.
2) Increased control of your financial affairs. 3) Improved personal relationships. 4) A sense of freedom from financial worries obtained by looking to the future. |
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The Financial Planning Process
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Determine your current financial situation.
Develop your financial goals. Identify alternative courses of action. Evaluate your alternatives. Create and implement your financial action plan. Review and revise your plan. |
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What you give up when you make a choice
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Opportunity cost - the cost, or trade-off of a decision cannot always be measured in dollars - sometimes it's your time
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Five Types of Risk
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-Inflation
-Interest -Income -Personal -Liquidity |
