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1.
When you work with a financial planner, he or she will draw up a document that expresses your net worth. What is this document called?
Balance sheet. More specifically, it is called a personal balance sheet. It expresses your assets, your liabilities, and your ultimate net worth.
2.
Which step of financial planning typically calls for creating financial statements?
Analyzing and evaluating your financial status. This is the stage where you draw up a picture of your financial status based upon data gathered previously.
3.
Which of the following is not one of the generally practiced steps in financial planning?
Spending your money. That is a step you do on your own, hopefully once your plan is safely in place.
4.
Good financial planning is methodical in nature.
True. It uses a set of measurable, defined procedures to create a picture of your financial life.
5.
In order to work, financial planning requires that you _______.
Set goals. While the other choices may eventually be necessary, the only requirement is that you set some goals.