PFIN 5th Edition by Randall Billingsley,Lawrence Gitman,Michael Joehnk

Question

PFIN 5th Edition by Randall Billingsley,Lawrence Gitman,Michael Joehnk

النسخة 5الرقم المعياري الدولي: 978-1305661707

PFIN 5th Edition by Randall Billingsley,Lawrence Gitman,Michael Joehnk

النسخة 5الرقم المعياري الدولي: 978-1305661707

تمرين 1

How can using personal financial planning tools help you improve your financial situation? Describe changes you can make in at least three areas.

التوضيح

موثّق

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.
Using personal financial planning tools will help in organizing the finances properly. It would help in evaluating their present financial conditions and make efforts to change the present state to a desired state of finance.
We can make changes in:
• Expenditure in household items and groceries: We can reduce (or) minimize the amount spent for household purchases and groceries. First we have to identify whichever item is really want (or) need and how much benefit we can get from that item. Therefore, it is clearly says that a small change in household expenditures and groceries, we can plan our personal financial needs.
• Investment patterns: Based on the financial needs and financial goals we can change our investment patterns.
• Increase savings by proper financial planning: We can increase our savings by proper financial planning. Many investors will use some financial tools and plan their financial needs and also increase their savings by implementing proper financial plans.