Financial Planning

People are consumed with money, as to what it will buy them to gain the standard of which to live. Some people live paycheck to paycheck while other live frugally and save. Seeing that it is so important, people should be proactive in spending it wisely which will help reserve it for trying times, future investments, retirement and for your children.
Financial planning is the process of managing income to make decisions and make achievable goals around budgeting, car and mortgage purchases, savings, and retirement. Of course, it is hard to imagine that all the answers to a financial plan could be determined and used across a life time. However, the economy and personal life changes which makes financial planning an ever changing process. For example, when teenagers

In contrast, as an adult your priorities change due to having all the financial responsibilities of having food, a place to live, health insurance and savings. A person must evaluate their relationship and understanding of money, as this directly affects how they will develop a financial plan and stick to it. “Beware of your attitude toward money because it is the basis of your ‘money personality’ and money management style” (Gitman, Joehnk & Billingsley, 2014, p. 8). There also should be a determination of what is needed now and what is needed in the future. So there will be short-term goals that include savings plans and immediate needs such as expenses including a mortgage, car payment, and daily living necessities. The long-term goals can include investing for retirement, saving for a child’s college education and estate planning for family. There will also be intermediate goals that link the short-term and long-term goals such as paying of credit cards or reaching a net-worth in savings. Of course, there are many factors to consider when making those financial goals such as purchasing assets, insurance possibilities including employee