In this step, you evaluate your alternatives as part of the financial planning process. Use the many sources of financial information that are available. Look at your situation in life, your present financial situation, and your personal values. Consider the consequences and risks of each decision you make. This is like comparing personal financial planning theory and practise (more…)

Current economic conditions also affect your personal financial decisions and how economic conditions can influence financial planning. There are three important economic conditions: 1. Consumer prices, 2. Consumer spending, 3. Interest rates

Consumer Prices (more…)

Once you know how much money you need to meet your goals, you then have to think about where to invest it. To make that decision, you need to understand the different risk factors. Also, you should consider each investment’s potential for income and growth as well as its liquidity. You should evaluate the overall risk factor of making investment by examining five different components of risk: inflation risk, interest rate risk, business failure risk, financial market risk, and global company risk. Not only this will saving extra money, but the decision of investment is for long term investment only. (more…)