Topic 4 monitoring and adapting financial plans Flashcards
What questions can individuals ask themselves to work out their ideology for financial planning
What are your main needs and wants in life
WHat is your attitude to spending money
What is your attitude for spending
What is your attitude to borrowing and debt
What are your aspirations
WHat is your attitude to risk
The steps in drawing up a budget
Identify and list all sources of income
Identify all expenditure
Decide on the time period
compile the cash flow cast
total income-total expenditure shows variance
What the key to effective budget variance
Working out what is the cause of the variance
Whats the best way to monitor a budget
Keep receipts and put the actual numbers next to the predicted ones on an excel sheet
What time periods should your budget have
Short term - 2-3 weeks/months
Medium term - year
long term 3+
should have a budget for each
