Mastering Personal Financial Planning

Financial position = Your net worth and your household cash flow Adequate Protection = An understanding of how a household can be protected in event of an emergency Tax Planning = Lowering tax costs through tax reduction programs Investment and Accumulation Goals = Planning and investing for future financial goals

Personal Financial Planning = The management of money and financial decisions for a person or family Budgeting = The process of creating a plan to spend your money Investments = Putting money into something with the expectation of making a profit Retirement Planning = The process of determining retirement income goals and the actions and decisions necessary to achieve those goals

Net Worth = The value of all assets, minus the total of all liabilities Household Cash Flow = The difference between your expected yearly income and your expected yearly expenses Emergency Protection = Planning for unexpected events that could have a significant impact on your finances Tax Reduction Programs = Strategies and techniques used to minimize tax liability

<p>Introduction and concept of personal financial planning = An overview of the purpose and principles of personal financial planning Need and importance of personal financial planning = Understanding why personal financial planning is necessary Process of personal financial planning = The steps involved in creating a personal financial plan Financial planner as a profession = The role and responsibilities of a financial planner</p> Signup and view all the answers

<p>Household Assets = The items of value that a household owns Household Liabilities = The debts and obligations that a household owes Expected Yearly Income = The amount of money a household expects to earn in a year Expected Yearly Expenses = The amount of money a household expects to spend in a year</p> Signup and view all the answers