Question

Define the financial planning process. List the elements of a good financial plan. Identify and discuss the three most important personal factors and the three most important economic factors that affect your financial planning decisions.

Answer 1

Explanation:

The financial planning process is defined as a collection of actions carried out by an individual in other to manage their finances and to achieve personal economic freedom or satisfaction.

List the elements of a good financial plan includes;

• It should be aimed at protecting financial resources
• should be focused on debt avoidance
• It should take into account future expenses.

Important personal and economic factors:

Your income: it is important to know what your finances are in other to make the right decisions.

Your savings: By knowing the amount of spare money one has would allow the decides if he can bring in new expenses.

Your living expenses: This is a necessary factor to consider in other to meet or set achievable financial goals.