Financial Planning

The Financial Planning Flow Chart [pic] [pic] Once pecuniary goals train been set, certain aspects that must be considered ar : 1. Expenditure Bud haveing Budgets are detailed projections of income and expenses over a specified period of time. It requires a prediction of ones needs at various points. To condition a proper expenditure budgeting, ways of increasing income and reduce unnecessary expenses must be identified 2. Income Income would refer to any measurement of funds earned. 3. Tax Planning Taxes exert an enormous impact on ones personal finances. It reduces cash flow, influences investment decisions made, affects the way espousal is done, the type of life insurance bought and the method of economic system for retirement. An rough-and-ready tax planning would help one keep the money earned. By taking maximum advantage of tax saving opportunities and by adopting clearly-defined tax plans, will greatly increase the hotfoot with which financial goals are achieved. From these 3 aspects, relevant information squirt be gathered and each data stick outnister be individually analyzed before a proper financial plan is determined. 4. rescue Based on the income earned, the amount for budgeting and taxation can be determined and allocated accordingly. The amount left over from these would be the saving.

There are various savings and investment tools that can utilized in order to save, create and invest money so as to ultimately achieve financial independence. 5. Saving & Investment Tools a. Bank Deposits These are time or icy deposits placed with banks for fixed periods with fixed interest rates. Savings accounts, authoritative accounts, fixed deposits, investment accounts, time deposits and offshore accounts are more or less examples of bank deposits. Advantages - well regulated by the Central Bank - gnomish risk of loss of principal and interest Disadvantage - low return - poor... If you want to get a full essay, order it on our website: Orderessay

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