fin 310 midterm Exam Actual Questions With Correct Detailed Answers.
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Course
FIN.
Institution
FIN.
realistic and attainable financial plans - correct answer short term, long term, intermediate. rather than just save money state the purpose of your efforts like buy a car. your goals should reflect your financial and life situations. you dont plan for a 100,000...
realistic and attainable financial plans - correct answer short term, long term,
intermediate. rather than just save money state the purpose of your efforts like buy a car. your goals
should reflect your financial and life situations. you dont plan for a 100,000 car when you year salary is
15,000
basic steps in personal financial planning. - correct answer 1. evaluate your financial
health
2. define your financial goals (short, intermediate, long)
3. develop a plan of action
4. implement your plan
5. review your progress, reevaluate and revise your plan
step 1: evaluate your financial health - correct answer personal financial planning
process
examine how your current financial situation
how much you make/how much are you spending
need income tax return and balance sheet
step 2: define your financial goals - correct answer personal finance planning
process
write or formalize your goals
attach a financial cost to each goal
when you need the money the achieve the goal
analyze and revise your goals
identify what you are saving and how much you need to save
step 3: develop a plan of action - correct answer personal finance planning process
flexibility
, plan for life changes and the unexpected
how much cash do they have in their bank account, even if they have three houses they do not have
that money in their bank
liquidity: immediate use of cash by quickly and easily converting an asset
have three houses you could sell one
protection: prepare for the unexpected with insurance
minimization of tax: keep more of what you earn
make your spending conform with your budget goals
Step 4: Implement Your Plan - correct answer - Stick to it
- Use your financial plan as road map to achieve goals
graduate, work full time, kids going to college etc,
> be prepared to formulate a different plan to meet your goals.
>>you may want a 100,00 car but then later in life you change your mind
Short term goals - correct answer within 1 year
accumulate emergency funds, pay off bills and credit cards, purchase insurance, purchase major iteam
finance vacation
intermediate term goals - correct answer 1-10 years
save for older childrens college
save for home improvement
save for down payment
pay off major debt
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