Business Essentials, 12/e

The flowchart reads as follows:

1. Step 1:

   Assess Your Current Financial Condition

   • Identify where your money comes from.

   • Identify where your money goes.

   • Prepare a personal balance sheet to determine your net worth.

2. Step 2:

   Develop Your Financial Goals

   • Specify activities or items you want to save for.

   • Identify how much you need for each item and activity.

   • Identify the timing for accomplishing each goal.

3. Step 3:

   Identify a Plan of Action

   • Identify sources of cash, amounts from each source, and timing of inflows.

   • Identify uses of funds, amounts needed, and timing of outflows.

   • Make spending conform to affordable limits.

4. Step 4:

   Implement Your Financial Action Plan

   • Perform the planned actions. Track your spending. Make it conform to plans. ...