Step 5: Create and Implement a Financial Action Plan In this step of the financial planning process, you develop an action plan. This requires choosing ways to achieve your goals. As you achieve your immediate or short-term goals, the goals next in priority will come into focus. To implement your financial action plan, you may need assistance from others. For example, you may use the services of an insurance agent to purchase property insurance or the services of an investment broker to purchase stocks, bonds, or mutual funds. Step 6: Reevaluate and Revise Your Plan Financial planning is a dynamic process that does not end when you take a particular action. You need to regularly assess your financial decisions. Changing personal, social, and economic factors may require more frequent assessments. When life events affect your financial needs, this financial planning process will provide a vehicle for adapting to those changes. Regularly reviewing this decision- making process will help you make priority adjustments that will bring your financial goals and activities in line with your current life situation. A ) Activity/ Exercise Instruction: Identify the correct word or phrase being described in each statement. Write your answer in the space provided before each number. 1. A comprehensive evaluation of an individual's current pays and future financial state by using current known variables to predict future income, asset values and withdrawal plans. 2. A step-by-step approach to meet one's life goals 3. Acts as a guide as you go through life's journey. 4. Refers to the amount left over after an individual's consumer spending is subtracted from the amount of disposable income earned in a given period of time. 5. The process of managing your money to achieve personal economic satisfaction. Challenge BUSINESS FINANCE GRADE 12 ABM - MODULE NO. 3 Learner Name: DATE: Grade & Section: SCORE: TEST I. Instruction: Before each statement, write TRUE if the statement is correct or FALSE if the statement is incorrect. ___1. A financial plan is a document containing a person's current money situation and long-term monetary goals, as well as strategies to achieve those goals. 2. A budget organizes an individual's finances and sometimes includes a series of steps or specific goals for spending and saving in the future. 3. In investment plan a financial plan can focus on other specific areas such as risk management, estates, college, or retirement. _4. One of the practical benefits to financial planning it will helps you to increase your savings. ___ 5. To develop your financial goals, you should periodically analyze your financial values and goals. ___6. To evaluate your alternative, you should not need to evaluate possible courses of action, taking into consideration your life situation, personal values, and current economic conditions. ___7. Relevant information is required at each stage of the decision-making process. __8. Financial planning is not a dynamic process that does not end when you take a particular action. __9. To implement your financial action plan, you may need assistance from others. __10. The best way to consider risk is to gather information based on your experience and the experiences of others and to use financial planning information sources. Test II. Answer the questions logically. 1. What is personal financial planning process? 2. Do you believe that if we cannot manage our personal finances well, then we cannot also manage corporate finances well? Explain your