FIN 502 Lecture Notes - Lecture 2: Brainstorming, Goal Setting, Personal Finance
9 Nov 2015
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What will be covered: difference between financial desire and goal, for individual, the process of setting goals and it"s variables, the process of financial planning and the variables, the mathematical or formal model, for professional financial planning. Financial desire: a statement e. g. i want to earn enough money, or want to retire early comfortably. Financial goal: must have two components e. g. amount and date. Example, i want ot have m in 15 years" time. Everyone has financial goals that must be met to satisfy our desires. Yet we often reject formal acknowledgement and planning that would help to ensure that we meet those goals. It is a tool to help us get to where we want to be! Characteristics of good goals: specific, measurable, realistic (attainable) Goals must have amounts and dates before they can be analyzed or used in personal finance. All personal finance problems can be expressed in terms of the formal mathematical model: for individual.
