CNSR SCI 275 Study Guide - Gnu Libtool, Financial Adviser, Compound Interest
30 Oct 2014
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Document Summary
Manage the unplanned with a financial plan. Accumulate wealth for special expenses travel, a big wedding, college, etc. Minimize your payments to uncle sam legally reduce your taxes. Keep track of what you spend every day. Compare what you spend to what you make. Record your goals, attach costs to them, and determine when the money to accomplish those goals will be needed. Flexibility a financial plan must be flexible so that it can adjust o any changes in your life, like losing a job. Liquidity: the relative ease and speed with which you can convert noncash assets into cash; having access to your money when you need it. Protection insurance shields you from events that threaten your financial security. Minimization of taxes not necessarily minimize the taxes you pay, but maximize the cash available to you after taxes have been paid. A financial plan is a tool, not your goal. Review your progress, reevaluate, and revise your plan.
