1. Financial
Planning
Lecture 2
Katherine Spradley

2. Why
Why do we plan?
Honor wishes, avoid taxes, increase/maintain
assets, avoid financial pitfalls, retirement, creating
order…

3. Financial organization
 Where are you now?
 Where are all of your documents?
 Together?
 Paper?
 Electronic?
 Notebook?
 Thumb drive?

4. Net Worth
 Assets-Liabilities
 Where you have been
 What you have done
 Balance Sheet

5. Balance Sheet
3 possibilities
 More assets than liabilities
 Equal assets and liabilities
 More liabilities than assets
 Where are you?

6. Cash Flow
 What are you doing
now?
 What is coming in?
 What is going out?
 What are you left
with?

7. Budget
 Planningfor the future
 How do you plan on spending the money
 How much do you plan to earn?

8. Keeping it all together
 How are we going to organize the
financial data for SWF29?