ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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include income but not expenses
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be changed during different stages in life
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include income and eliminate risk
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to be approved by an accountant
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Detailed explanation-1: -There are four stages to an individual’s financial lifecycle. There is the accumulation of wealth, growing or managing wealth, preserving and protecting wealth, and transferring wealth. Each phase of the cycle overlaps and needs to be managed using a comprehensive approach.
Detailed explanation-2: -Financial planning helps you understand your goals better in terms of why you need to achieve these goals and how they impact other aspects of your life and finances. Planning encourages you to manage inflation. You are aware of the price of various things and activities. You plan your budget in a better manner.
Detailed explanation-3: -When should you review your financial plan? This depends on your own circumstances but should be at least annually, and probably also when something major happens to your personal or financial situation. Think of your own personal circumstances over the last 5 to 10 years.
Detailed explanation-4: -1) Identify your Financial Situation. 2) Determine Financial Goals. 3) Identify Alternatives for Investment. 4) Evaluate Alternatives. 5) Put Together a Financial Plan and Implement. 6) Review, Re-evaluate and Monitor The Plan.