Introduction | II. The Internal and External Environment

A. Introduction

Environmental factors may affect how effective a financial plan is.

Christopher Columbus had an excellent idea as to where India was on the world map, but he did not expect a whole continent to be in between. A financial plan will only be as good as what is factored in the plan.

There are several environmental factors that can affect a family's financial plan:

  • The economy
  • The government
  • Family issues
  • Family events
  • And much more

B. The Internal Environment

Family Events

Marriage

Divorce

Children

Death

Personal Business

Career

C. The External Environment

The Economy

Inflation

Interest Rates

The Government

Taxes

Monetary Policy

Fiscal Policy


Back to Introduction to Financial Planning

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License