Managing Your Personal Finances. Chapter 23. Chapter 23 Learning Goals. W hat is the personal financial planning process, and how does it facilitate successful financial management? H ow can cash flow planning and management of liquid assets help you meet your financial goals?
6. Monitor the plan
5. Implement the plan
4. Develop a plan
3. Analyze the information
2. Gather information
1. Establish financial goals
RevenuePrize money $105,858ExpensesHotel, air, other travel $45,679Meals & entertainment 17,650Telephone 487Business expenses & dues 1,656Tennis equipment 4,379Computer 2,383Foreign taxes paid 10,826$83,060Earnings before taxes$22,492Taxes$19,654Earning after taxes$2,838
Source: Fortune, Sept. 28, 1998, p. 58.
Source: The Star Ledger, Dec. 19, 1999, Section 3, p. 3.
Growth stocks, funds
Increasing risk of lost principal
Increasing potential gain
Balanced mutual funds
High-grade municipal bonds
Treasury bills, bonds, notes
Frequency of Employee Benefits in 1999
Source: Bryan, Pendleton, Swats & McAllister survey in The Arizona Republic, Jan. 2, 2000, pg. D3.