MCS 2100 Chapter Notes - Chapter 1: Interest Rate Risk, Money Market Fund, Financial Plan

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 2100
• Professor: May Aung

Document Summary

The financial planning process: personal financial planning: the process of managing your money to achieve personal economic satisfaction; must be planned to meet specific needs and goals, advantages include: Increased effectiveness in obtaining, using and protecting your financial resources. Increased control of your financial affairs by avoiding debt, bankruptcy and dependence on others. Improved personal relationships resulting from well-planned and effectively communicated financial decisions. Income, savings, living expenses, debts: prepare a list of current asset and debt balances and amounts spent for various items. Step 3: identify alternative courses of action: continue the same course of action, expand the current situation, change the current situation, take a new course of action. Do nothing deciding not to take action dangerous alternative: evaluate possible courses of action, take into consideration life situation, personal values, Step 6: re-evaluate and revise your plan: financial planning is a dynamic process need to regularly assess your financial decisions.