3. The financial planning process - Part 1 What are the steps in the process of personal financial planning? Personal financial planning helps you acquire, use, and manage your nancial resources more effectively and efficiently so that you can improve your standard or living and quality of re. Effective personal financial planning requires that you know what you are doing and in what order you will do it Therefore, it is criticat to know the sequence of steps used in the financial planning process The following table ists six principal steps in the process of financial planning. Place these steps in their proper order by inserting the correct numbers (1 through by in the first column Step Number kle Step in the Process Develop and implement budgets to control your progress toward your goals Implement your financial plans and strategies Develop and use rinancial statements to evaluate the results of your plans and budgets. Develop the financial plans and strategies needed to achieve those goals Define your financial goals As your personal arcumstances change, redefine your goals and revise your plans and of your nancial planning activities Most financial advisors recommend developing goals with Financial goals describe the desired three broad categories at completion dates Financial goals describe the desired three brood categories of completion dates: of your financial planning activities. Most financial advisors recommend developing goals with from now Long-term goals, which Identity wants and needs that are expected to be realized Short-term goals, which address more immediate needs ond wants, such as those occurring within the next goals, which identity wants and needs that occur between the other two categories months Your financial goals and aspirations can be differentiated according to several criterio, including their target completion dates, potential effectiveness, importance, and estimated cost, among others Identity whether each goal writing practice will make the goal more or less effective More Effective Less Effective Goal Writing Practice Victoria's financial goals are not consistent with her wants needs, and hinancial resources Sandra's desired financiar outcomes are not expressed in monetary terms and are not prontized Victoria wrote goals that are consistent with her personality and attitudes toward money management Matthew recognizes that goals particularly long term goals, may have to be revised to accommodate changes in der and recrutonces