The First Component in Creating a Financial Plan Is

question 66

Multiple Choice

The first component in creating a financial plan is

• A)preparing a budget.
• B)setting up a brokerage account.
• C)starting an emergency fund.
• D)purchasing the necessary car insurance.

---

Definitions:

Net Loss

The amount by which expenses exceed revenues, often deductible from other sources of income on a tax return.

Allocation Method

A system or formula used to distribute, divide, or allocated resources, expenses, or income among various accounts or entities.

Rental Income

Income earned from renting out property or equipment.

Fair Market Value

The price that property would sell for on the open market between a willing buyer and a willing seller.