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Spending Plans

Spending Plans. Advanced Level 2.05. What is a Spending Plan?. An income and expense statement sometimes referred to as a budget which records both planned and actual income and expenses over a period of time. A budget. Why is a Spending Plan an important part of financial planning?.

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Spending Plans

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  1. Spending Plans Advanced Level 2.05

  2. What is a Spending Plan? An income and expense statement sometimes referred to as a budget which records both planned and actual income and expenses over a period of time A budget

  3. Why is a Spending Plan an important part of financial planning? Help manage your money in a positive manner Analyze the opportunity costs of your trade-offs to maximize financial well-being Increase net worth Helps set and reach goals

  4. Money Management Tools Statement of Financial Position Income & Expense Statement Spending Plan What is my future money management plan? What is my financial position today? How have I managed my money in the past? Determine what changes to make Make changes

  5. A forward-looking Income and Expense Statement May use the same template for both the Income and Expense Statement and the Spending Plan 

  6. Spending Plan Development Process Step 1 - Track Current Income and Expense Step 5 - Evaluate and Make Adjustments Develop the spending plan Maintain the spending plan Step 4 - Implement and Control Step 2 - Personalize Your Spending Plan Step 3 - Allocate Money to Each Category

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