4.1 - Establishing Clear, Measurable Objectives

Question 1

Questions individuals can ask themselves to work out their attitudes towards financial planning:

Answer 1

• What are your main needs and wants in life?
• What is your attitude to spending, saving and borrowing?
• What is your attitude to risk?

Question 2

Steps involved with drawing up a budget:

Answer 2

1. Identify and list all sources of income
2. Identify and list all items of expenditure
3. Decide on the cash-flow planning time period
4. Fill in the figures for all of the income sources and types of expenditure in the cash-flow chart
5. Calculate total income and expenditure for each time period