Week One DQ 1
Post a 150- to 300-word response to the following discussion question by clicking on Reply: Refer to Figure 1-1 of Personal Finance. List the five steps in the personal financial planning process. Share one or two questions you may ask yourself when you are in Step 1. According to Figure 1-1 of Personal Finance, the five steps in the personal financial planning process are:
Step 1 – Analyze your current finances,
Step 2 – Develop goals,
Step 3 – Identify and evaluate strategies to achieve your goals,
Step 4 – Establish and implement your plan,
Step 5 – Reevaluate and revise your plan as needed.
Analyzing your current finances can be an eye-opening experience. This is especially true if you have not been paying much attention as to where your money is actually going. When analyzing your current finances in step 1 of the process, some of the questions you may ask yourself are: Where does my income come from each month?
How often do I receive income? Is it weekly? Is it bi-weekly? Is it monthly? What payments do I make on a regular basis?
Do I have payments that are not made on a regular basis such as house insurance, car insurance, city and county land taxes, etc? Do I have any loans or payments that will be totally paid off in the near future? What is the total of my income versus my outgo each pay period or month? Do I have any major purchases that must be made in the near future? *********************************
Week One DQ 2
Post a 150- to 300-word response to the following discussion question by clicking on Reply: Setting goals is one of the five steps of the financial planning process. Refer to Section 1.2 of Personal Finance, which discusses the changing needs over the Life Cycle. Provide some examples of financial goals that may be important for a family. Select one goal that is important to you and briefly discuss how this goal will influence your future financial planning. As we progress...