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 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 cetiumn.

Step Number Step in the Process

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

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

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

Implement your financial plans and strategies.

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

Define your financial goals.