Financial Planning Process
Define the financial planning process
According to Rachel and Carol (2009),”A financial planning process is a recursive process of defining goals, assessing situations, identifying and evaluating choices, making choices and assessing the results, and redefining the goals p.18.” A financial planning process involves the situation whereby an individual calculating the next possible step to take, and the strategy involves in achieving the steps. And as defined earlier, financial planning process encompasses goal definitions, identification of choices, and evaluation of choices, choosing, assessing both the current and the resulting situations, and redefining.
· List the elements of a good financial plan.
And as explained by Rachel and …show more content…
This is affecting my financial in the sense that, I am already taking a huge financial step, with reliable strategy in reaching the stipulated goal at the age of 40.
Meanwhile, the three most important economic factors that affect my financial planning decisions are:
1. Labor market
2. Currency value, and
3. Economic recession
Labor market
The effect the labor market is having on my financial planning process can be view from the fact that companies prefer cheap labors for high productivity. And the effect can be more alarming, if leaving one job for the other, where the market for labor may be more challenging.
Currency value
Presently in my country, the exchange rate has not been favorable, as the dollar is controlling the currency value. My economy plans is affected with the present exchange rate depreciating by more than 100%.
Economic recession
The GDP of the country has dramatically fallen into recession, and my economy plans for the next couple of years is uncertain. The present recession crippling the nation’s economy is not sure of a rapid recovery, which can in turn lead to depression.
According to Rachel and Carol (2009),”A financial planning process is a recursive process of defining goals, assessing situations, identifying and evaluating choices, making choices and assessing the results, and redefining the goals p.18.” A financial planning process involves the situation whereby an individual calculating the next possible step to take, and the strategy involves in achieving the steps. And as defined earlier, financial planning process encompasses goal definitions, identification of choices, and evaluation of choices, choosing, assessing both the current and the resulting situations, and redefining.
· List the elements of a good financial plan.
And as explained by Rachel and …show more content…
This is affecting my financial in the sense that, I am already taking a huge financial step, with reliable strategy in reaching the stipulated goal at the age of 40.
Meanwhile, the three most important economic factors that affect my financial planning decisions are:
1. Labor market
2. Currency value, and
3. Economic recession
Labor market
The effect the labor market is having on my financial planning process can be view from the fact that companies prefer cheap labors for high productivity. And the effect can be more alarming, if leaving one job for the other, where the market for labor may be more challenging.
Currency value
Presently in my country, the exchange rate has not been favorable, as the dollar is controlling the currency value. My economy plans is affected with the present exchange rate depreciating by more than 100%.
Economic recession
The GDP of the country has dramatically fallen into recession, and my economy plans for the next couple of years is uncertain. The present recession crippling the nation’s economy is not sure of a rapid recovery, which can in turn lead to depression.