BU223 Lecture Notes - Lecture 1: Opportunity Cost, Estate Planning, Risk Premium
Document Summary
The financial planning process: personal financial planning: the process of managing your money to achieve personal economic satisfaction. Control financial situation: advantage of personal financial financing: effectiveness of financial resources, control of financial affairs, personal relationship, freedom of financial worries, the financial planning process (6 steps, step 1: determining your current financial situation. Financial goals what you want to achieve with your money. Should be realistic, stated in dollar and time frames, and listed in order of priority. Consider all possible alternatives to make more effective and satisfying decisions. Because it"s a dynamic process that does not end when you take a particular action. Need at least once a year to review. This help to make priority adjustments that bring your financial goals and activities in line with current life situation. Indicate the type of action to be taken: goals are basis of activities you undertake.
