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PFIN 3rd Edition by Lawrence Gitman,Michael Joehnk,Randall Billingsley
Edition 3ISBN: 978-1285082578PFIN 3rd Edition by Lawrence Gitman,Michael Joehnk,Randall Billingsley
Edition 3ISBN: 978-1285082578 Exercise 2
Explain the life cycle of financial plans and their role in achieving your financial goals.
Explanation
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A financial planning is a dynamic process and by implementing this we can change our needs and financial goals. Financial goals are the goals (or) results that an individual wants to attain. For example: buying of a home, constructing a building and achieving a financial independence. Personal financial planning will consider the individual financial goals.
The changes in our goals are due to the financial planning. A financial plan is a map to achieve the goals. The different stages of our life cycle will change our financial needs and goals. The different stages of life cycle is from early childhood, high-school and college, family formation, career development, pre-retirement and retirement. As we more through the life cycle, our income changes, and our expenditure changes recording to our requirements. Hence, proper financial planning helps us to meet our financial goals with the limited finance available with us. Financial goal, like a good income, purchasing house, and change in the debt condition can be achieved through a good financial planning.
The changes in our goals are due to the financial planning. A financial plan is a map to achieve the goals. The different stages of our life cycle will change our financial needs and goals. The different stages of life cycle is from early childhood, high-school and college, family formation, career development, pre-retirement and retirement. As we more through the life cycle, our income changes, and our expenditure changes recording to our requirements. Hence, proper financial planning helps us to meet our financial goals with the limited finance available with us. Financial goal, like a good income, purchasing house, and change in the debt condition can be achieved through a good financial planning.
PFIN 3rd Edition by Lawrence Gitman,Michael Joehnk,Randall Billingsley
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