The central role of cash in your financial plan is illustrated in Figure 3.1. Budgeting decisions…
Year: 2021
Record keeping – paper and digital
Communicating your financial plan to your family is critical. You will need these records when you…
Retirement
Retirement planning involves determining how much to save for retirement and how to invest that money.…
Investing
You know you need to accumulate some funds for liquidity to meet day-to-day expenses and to…
Insurance
Insurance planning is a component of your financial plan that determines the types and amounts of…
Financing
Major purchases such as cars, houses, and paying for college typically require borrowing money for long…
Managing Liquidity
Liquidity refers to how much readily available cash you have on hand for meeting immediate wants…
Components of a financial plan
Step 1 Budget planning is the process of forecasting future expenses and income. The first step…
What to plan for
Every person is different. Everyone has his or her own personal goals. These can range from…
Opportunity Cost
An understanding of personal finance helps you make informed decisions about your personal situation. Money does…