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- Q7 “Financial planning is an ongoing process, providing direction for achieving your goalsthrough proper management of your financial situation. It takes a holistic view of yourlifestyle, your needs and your priorities. A financial plan is a tool to analyze your financialsituation and provide projections that can assist you in understanding your true situation andwhether you can achieve your goals”. Discuss the significance of financial planning and alsodiscuss about Bhartiya Model of Financial Planning?What is true about the way you should approach financial goals across different stages of your life? A.As you progress through life, your values and financial possibilities will gradually change, which leads to an evolution of your financial goals over time. b. Most people tend to make more money as they grow older and more experienced. After a certain point in your life you should have enough money to meet all of your financial goals, at which point you will no longer need to concern yourself with long-term goals. c. You need to be consistent and determined when it comes to financial goals. The financial goals you make as a young adult should stay in place for the rest of your life. d. Failure to meet a financial goal is a sign of personal weakness, so you should never alter a goal until you have completed it exactly as you imagined it1. Why is it important to know your financial position?2. What benefits would you get from knowing your financial position?3. How your inner assets would help you in achieving your future goals?
- Give three (3) guiding principles in investing, saving, and spending on how to invest, save, and reduce spending that can be used as strategies on how to save more and build wealth as starting point in managing a healthy financial future especially in this challenging time brought by the pandemic. A. Personal Savings Principle B. Personal Spending Principles C. Personal Investing PrinciplesExplain the term, "financial literacy", and its importance in your life and future.How can using personal financial planning tools help you improve your financial position? Please explain and give examples.
- Explain the idea of mental accounting. Group of answer choices Mental accounting refers to the way we emotionally account for ups and downs of our lives. Mental accounting refers to the interest rate we use when we calculate the present value of future mental assets. Mental accounting is the way people keep track of their mental assets and liabilities. Mental accounting is the notion of putting dollars in different mental categories where they take different values.What is the best method of financial planning? How do you save money and spend money wisely? Explain in 300 words.True or False 1. Another advantage of having a personal financial plan is effective debt management. 2. Personal financial planning also refers to household financial budgeting. 3. Interest rates measures the cost of money; the cost of credit when one borrows; the return on one's money when an individual invests.
- What financial tools can help you make better financial decisions?Discuss how one’s personality can cause the success or the failure of one’s financial goals. Cite a specific example to illustrate your answer.Review the material in Chapter 1 on Personal Financial Planning. Define the financial planning process List the elements of a good financial plan. Identify and discuss the three most important personal factors and the three most important economic factors that affect your financial planning decisions.
