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Unformatted text preview: In order to have more money available in the future you must reduce spending or increase earnings Step 4: Implement a Plan for achieving your goals Decide on the best strategies for achieving your goals so you can implement the plan Step 5: Regularly Reevaluate and revise your plan as necessary Factors that influence personal financial planning decisions: Inflation-your income must rise at a faster rate than the inflation rate Measured by CPI % change in CPI= CPI2 CPI1/ CPI1 Marginal reasoning- Analysis that considers the increased benefit which would result from a particular decision. Sensitivity Analysis-Estimation of the change in outcome that results from a change in assumptions Considering what happens if you are wrong in assumption...
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This note was uploaded on 02/24/2008 for the course HADM 3325 taught by Professor Strebel during the Fall '07 term at Cornell University (Engineering School).
- Fall '07