FIN 420 - Week 1 - DQ 2

FIN 420 - Week 1 - DQ 2 - funds are set aside for expected...

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Ch. 1 of Focus on Personal Finance introduces eight components of personal financial planning. Describe three components of personal financial planning. Visit one of the Key websites suggested on the corresponding pages of Focus on Personal Finance for each of the three components you described. What information did you find most valuable on the websites you visited? The three components of personal financial planning that I have chosen from the eight are planning, saving, and investing. The first component that I have chosen is planning which are the actions to determine future financial directions. Planning could be just forecasting that certain financial purchases or activities will be required in the future so planning is important to make sure these actions are documented. The second component is saving. Saving is when
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Unformatted text preview: funds are set aside for expected and unexpected expenses. Saving could be setting funds aside in a savings account or keeping funds set aside at home. The last component is investing which is the accumulation of funds for long-term financial security. Investing could be putting money aside in a 401K at ones work or adding funds to an IRA account. Either is a form of investing in the future and making sure money is available upon retirement. The information that I found most useful is that there are many programs available to help folks to save and plan for the future including their retirement. The websites that I visited offered various financial saving and financial planning programs and financial status of mutual funds and stocks that may be of interest to different groups of people....
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