Financial Planning
Myeesha Peterson
A Plan for Budgeting and Taxes
There are 4 steps involving your Budget
- Establishing your NetWorth
- Establishing your income
- Identifying expenses
- Considering the impact of taxes
Establish your Financial goals
-Short term goals are goals that ca be accomplished within a year
-Intermediate goals are goals that ca be accomplished within 1-5 years
-Long term goals are goals that will not be accomplished for over 5 years
-Intermediate goals are goals that ca be accomplished within 1-5 years
-Long term goals are goals that will not be accomplished for over 5 years
Evaluate
- Your financial goals are dependent on your income, but not fully
-If you make a lower income, you want to keep your expenses lower
- Forecasting is a projection about what will happen in the future
-Forecasting helps you figure out where you expect be in your life at a specific time
-Fixed expenses remain the same
-If you make a lower income, you want to keep your expenses lower
- Forecasting is a projection about what will happen in the future
-Forecasting helps you figure out where you expect be in your life at a specific time
-Fixed expenses remain the same
Identify and evalute your options
-More than one way to achieve your financial goals
-Ways to evaluate your options is to make a list of pros and cons, and consider your risk tolerance
-Ways to evaluate your options is to make a list of pros and cons, and consider your risk tolerance
Periodically Evaluate Your Plan
What to look at :
-Is your plan working?
-Are you slowly accomplishing your goal?
-What needs to be changed to get you on the right track?
-Should you revise anything
-Is your plan working?
-Are you slowly accomplishing your goal?
-What needs to be changed to get you on the right track?
-Should you revise anything
Choose The Best
-Pick the option that is the best for you
-Risk is likelihood of loss
-High Risk= high potential for returns
-Low Risk low potential returns
-Risk is likelihood of loss
-High Risk= high potential for returns
-Low Risk low potential returns