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1.
Once you have made a financial plan, _______.
You must review it and change it if necessary. Plans are not set in stone, and neither are they self-correcting; you must revise them over time.
2.
What financial planning tool helps you plan your spending?
Budget. A budget is a powerful tool that is usually part of any financial plan.
3.
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.
4.
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.
5.
Risk management is typically covered in a professional financial plan because _______.
Risk can destroy your wealth. That is why insurance is included in most financial planning.