- Identify the three stages of the personal-finances planning process.
- 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:
- Evaluate your current financial status by creating a net worth statement and a cash flow analysis.
- Set short-term, intermediate-term, and long-term financial goals.
- Use a budget to plan your future cash inflows and outflows and to assess your financial performance by comparing budgeted figures with actual amounts.