Financial Planning: The ties that BandWhy Personal Financial Planning?Money doesn’t come with instructionsIt’s easier to spend than to savePeople are “ignorant” about itIf you don’t control your finances, they will control youTo achieve your goalsTo reduce your stress1 out of 4 credit card history has an error What you can AccomplishManage the unplanned“Find money” in your budgetmake big-ticket purchasesaccumulate wealth or special expenses and goalsinvest for retirement “Cover your assets”invest intelligently maximize after-tax incomeThe Financial Planning ProcessFinancial planning is an ongoing processoAs your life goals and situationFive Basic Steps to personal financial planning:1.Evaluate your current financial condition2.Define your financial goals3.Develop a plan of action (3 diff plans)4.Implement you plan5.Review your progress, re-evaluate your situation/goals, andrevise your plan(test question: gives situation and which step is it)Evaluate Your Current Financial Condition:What do you own? (assets)What do you owe? (liabilities, debts)What do you earn? (income)What do you spend? (expensesoWhat are you spending it on?