Components of a Financial Plan
February 12, 2025
The ownership and storage of cryptocurrencies are quite different as compared to regular currencies. It is for this reason that people who are new to the crypto universe find it challenging to understand how the storage and transfer of cryptocurrency works. Cryptocurrency wallets are one of the most popular ways which are used to store […]
The double entry system of bookkeeping is said to have revolutionized growth in modern business. It is only because businesses are able to keep track of their growing scale of transactions efficiently that they grow further. This has been facilitated by a well designed, error preventing accounting system called the double entry system. Here are […]
In corporate finance we studied that companies had an option when it came to compensating their equity shareholders. They could both pay these shareholders cash dividends from the earnings of the current year or alternatively they could conduct a share repurchase program and buy back some shares from the same proceeds. The monetary effect would […]
Infrastructure projects are most needed in developing nations. These are the countries where infrastructure projects are able to create the most growth. This is because the spillover effects of infrastructure projects are felt significantly in emerging markets. Ideally, emerging markets should create policies that attract more and more foreign investment on to their shores. However, […]
The concept of strategic finance relates to making decisions that help the firm increase its cash flow in the long run. Strategic finance is about changing the focus from short-term profits to long-term value creation. On the other hand, sustainability is about including more stakeholders in the value creation process. For instance, in the past, […]
In the previous article, we learned about the three financial statements. We also learned how income statements and balance sheets are backward-looking financial statements. We also understood that the budget is the only forward-looking financial statement in the personal finance domain. It is the only statement that can be used to prevent economic mistakes from happening. This is the reason why a budget is given special importance in personal finance studies. Individuals who are highly successful in managing their personal finances attribute their success to budgeting techniques. However, there are many personal finance experts who criticize budgeting techniques as well. In this article, we will have a closer look at the advantages and disadvantages of budgeting.
The bottom line is that a budget is an important tool that can be used in the process of financial planning. However, its usefulness is subjective. Some investors derived a greater value from the budgeting process than the others.
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