COMMERCE 4FP3 Final: Commerce 4FP3 notes

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Personal financial planning is the process of managing your money to achieve personal economic satisfaction increased effectiveness in obtaining, using, and protecting your increased control of your financial affairs by avoiding excessive debt, Attitude toward money e. g. money = a form of security, money = mean to express appreciation. How are financial decisions made (self decision or others) * considering all possible alternatives help, do nothing is dangerous: evaluating alternatives opportunity cost: personal opportunity cost financial opportunity cost (interest, liquidity and safety of investments) It does not end, regular assess of financial decisions needed. Timing of goals short-term goals within the next year, small debts intermediate goals two to five years long-term goals more than five years off, e. g. post-secondary education, vacation home. Tangible: consumable-product goals usually occur on a periodic basis & involve items that are used up quickly, e. g. food, clothing, entertainment durable-product goals involve infrequently purchased, expensive items, e. g. cars, sporting equipment.

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