Zusammenfassung der Ressource
TOPIC 1 - 1.7 CONTINGENCY PLANNING
- An individuals personal financial plans evolve as the persons
circumstances change. for example when someone leaves
home, gets a job, gets married or has a child.
- Most of the time these events can be planned for. However, some can be a surprise
so these need to be considered/included in a financial plan.
- Contigency planning means to attempt to plan or take into account unexpected events.
- FAVOURABLE EVENTS
- Getting a job
- Having an increase in income/promotion
- Winning the lottery
- Paying off a personal loan
- An increase in saving or
the value of an asses such
as your house
- UNFAVOURABLE EVENTS
- Losing a job
- Unemployment is a problem for someone who already
owes money as it will be harder to pay off debts.
- Rate of income tax increasing
- Becoming ill and having to stop work
- Unexpected car repair costs
- When interest rates fell, it made loans cheaper. however,
banks changed their lendings policies so it was harder for
first time buyers so get a loan.