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Financial
Planning
Lecture 2
Katherine Spradley
Why

Why do we plan?
Honor wishes, avoid taxes, increase/maintain
assets, avoid financial pitfalls, retirement, creating
order…
Financial organization
 Where are you now?
 Where are all of your documents?
    Together?
    Paper?
    Electronic?
    Notebook?
    Thumb    drive?
Net Worth

   Assets-Liabilities
   Where you have been
   What you have done
   Balance Sheet
Balance Sheet
3   possibilities
      More assets than liabilities
      Equal assets and liabilities
      More liabilities than assets



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

 Planningfor the future
 How do you plan on spending the money
 How much do you plan to earn?
Keeping it all together

 How are we going to organize the
 financial data for SWF29?

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Badm 320 lecture 2