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1.
Good financial planning is methodical in nature.
True. It uses a set of measurable, defined procedures to create a picture of your financial life.
2.
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.
3.
What financial planning tool helps you plan your spending?
Budget. A budget is a powerful tool that is usually part of any financial plan.
4.
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.
5.
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.