Essentials
Things people desire for reasons beyond survival and basic comfort
What is Wants?
this is a process in which a buyer makes a decision that involves 6 steps
What is the Decision Making Process?
things you want to achieve in your life
What are personal goals?
A professional consultant who provided financial advice
What is a financial planner?
Costs that do not change each month
What are fixed expenses?
Money or other items of value that are used to acquire goods and services
What is Financial resources?
The part of the decision making process when one reflects on the choice that they made.
What is the "Re-evaluate your choice" step?
Plans for how you will pay for your personal goals
What are Financial Goals?
A percentage of a sale from the investment products your purchase. *You must understand this when interviewing financial planners
What is a commission?
A spending and saving plan based on expected income and expenses
What is a budget?
Income from your job, investments and other sources
What is Cash Inflows?
The part of the decision making process in which one does research on the problem they are trying to solve.
What is the "Gather Information" step?
Things you wish to achieve in the next two to five years
What are Intermediate Goals?
The use of your personal information by someone else without permission to commit fraud or other crimes
What is Identity Theft?
A soft copy format of your financial information stored on your computer
What is an electronic record?
Expenses, or items for which you must spend money
What is Cash Outflows?
Giving up one option in exchange for another
What is a trade-off?
Things you wish to achieve in one week to one year
What are Short Term Goals?
the process of converting data to a coded form as a way to keep your information safe.
What is encryption?
costs that can go up or down each month
What are variable expenses?
This documents takes your assets (money and items you own) and subtracts your liabilities (money that you owe) and gives you your.....
What is Personal Net Worth Statement?
the value of your next best option- what you are giving up
What is Opportunity Cost?
Standards in which process is measured when trying to achieve your goals
What are benchmarks?
What is phishing?
The difference between planned amounts and actual amounts
What are Variances?