Question

What are the elements of financial planning?How does financial planning address the challenges of changing lifestyles?

Investing and borrowing moneyIt encourages borrowing heavily to satisfy desires

Budgeting and spending impulsivelyIt emphasizes maintaining a present standard of living without upgrades

Allocating assets based on risk appetite, risk management, and retirement planningIt helps cut down unnecessary expenses and maintain or upgrade one's standard of living

Accumulating debt and minimizing savingsIt discourages spending on mobile phones, cars, and homes

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Answer: (c).Allocating assets based on risk appetite, risk management, and retirement planningIt helps cut down unnecessary expenses and maintain or upgrade one's standard of living Explanation:The elements of financial planning include allocating assets based on one's risk appetite, risk management, retirement planning, tax and estate planning, and financing one's needs. These elements involve a comprehensive approach to managing one's finances effectively.Financial planning helps individuals plan their expenditure, cut down unnecessary expenses, and maintain their present standard of living while upgrading it over time. This approach addresses the challenges of changing lifestyles and helps individuals achieve their financial goals.

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Q. What are the elements of financial planning?How does financial planning address the challenges of changing lifestyles?

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