What are the steps in the process of personal financial planning?

Personal financial planning helps you acquire, use, and manage your financial resources more effectively and efficiently so that you can improve your

standard of living and quality of life. Effective personal financial planning requires that you know what you are doing and in what order you will do it$.$

Therefore, it is critical to know the sequence of steps used in the financial planning process.

The following table lists six principal steps in the process of financial planning. Place these steps in their proper order by inserting the correct numbers

$(1$ through $6)$ in the first column.

Step Number Step in the Process

As your personal circumstances change, redefine your goals and revise your plans and

strategies.

Implement your financial plans and strategies.

Develop and use financial statements to evaluate the results of your plans and budgets.

Develop and implement budgets to control your progress toward your goals.

Define your financial goals.

Develop the financial plans and strategies needed to achieve those goals.

Financial goals describe the desired

its either $($ contributions $,$inputs or results$)$ of your financial planning activities. Most financial advisors recommend developing goals with

three broad categories of completion dates:

Long$-$term goals, which identify wants and needs that are expected to be realized $($ its either $1-3$ years, $6-40$ years $,$ or $5,10$ years$)$

from now

Short$-$term goals, which address more immediate needs and wants, such as those occurring within the next its either $(24$ or $12)$

months

Its either $($Interactive$-$term, intermediate$-$term or Intermittent$-$term$)\_$ goals, which identify wants and needs that occur between the other two categories

Your financial goals and aspirations can be differentiated according to several criteria, including their target completion dates, potential effectiveness,

importance, and estimated cost, among others.

Identify whether each goal$-$writing practice will make the goal more or less effective.