what is meant by the term financial planning?\na. long - term goals are reached over an extended period of…
what is meant by the term financial planning?\na. long - term goals are reached over an extended period of time, so your current income does not affect them.\nb. it is creating a road map of everything you do with your money.\nc. it is hoping you will have enough money to pay all your bills on time.\nd. if your income exceeds your expenses, you will be able to save money for the future.\nplease select the best answer from the choices provided\na\nb\nc\nd
Answer
Brief Explanations:
To determine the best answer for "What is meant by the term financial planning?", we analyze each option:
- Option A: Long - term goals are affected by current income, so this is incorrect.
- Option B: Financial planning involves creating a detailed plan (a road map) for how one manages their money, including income, expenses, savings, investments, etc. This matches the definition of financial planning.
- Option C: Financial planning is more than just hoping to pay bills on time; it is a proactive plan, so this is incorrect.
- Option D: This describes a result of having a surplus of income over expenses, not the definition of financial planning.
Answer:
B. It is creating a road map of everything you do with your money.