The main reason to do personal financial planning is to
A) minimize overall costs.
B) minimize overall utility.
C) assign monetary value to consumption.
D) maximize overall utility.
E) stabilize overall utility.

Question

Quizplus · Accepted Answer

The main reason to do personal financial planning is to maximize overall utility, which means to make the most out of one's financial resources by choosing the best options that will yield the highest satisfaction or benefit. Personal financial planning involves setting realistic financial goals, creating a budget, managing debt, investing wisely, and protecting assets, among others, in order to achieve financial security and enhance one's quality of life. Minimizing overall costs or assigning monetary value to consumption may be part of the process but are not the ultimate goal of personal financial planning. Stabilizing overall utility is also not a common term used in personal financial planning.

The Main Reason to Do Personal Financial Planning Is to