This document provides information on financial planning and spending plans. It discusses creating a balance sheet to track assets and liabilities, preparing an income and expense statement to analyze spending, and developing a spending plan or budget to meet financial goals. Typical spending categories are outlined along with steps in the financial planning process and benefits of planning, such as gaining a sense of security and control over finances.
17. Net Gain/Profit/Surplus or Net
Loss/Deficit?
• Net gain/profit/surplus- there is remaining money to
either save, spend or invest
• Net loss/deficit - an individual is spending more
money that he/she is earning and has to use credit
(borrowed money) to meet their financial obligations