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14.3: The Financial Planning Process

  • Page ID
    4073
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    Learning Objectives

    1. Identify the three stages of the personal-finances planning process.
    2. Explain how to draw up a personal net-worth statement, a personal cash-flow statement, and a personal budget.

    We’ve divided the financial planning process into three steps:

    1. Evaluate your current financial status by creating a net worth statement and a cash flow analysis.
    2. Set short-term, intermediate-term, and long-term financial goals.
    3. Use a budget to plan your future cash inflows and outflows and to assess your financial performance by comparing budgeted figures with actual amounts.

    14.3: The Financial Planning Process is shared under a CC BY-NC-SA license and was authored, remixed, and/or curated by LibreTexts.

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