Question

question
daisy is planning to achieve her work and life goals. she wants to ensure she has a solid financial plan in place. she starts by reviewing her income, expenses, savings, and debts. next, she defines her short-term, medium-term, and long-term goals. she also wants to make sure she has a safety net for unexpected expenses. which two of the following steps should daisy include in her financial plan?
select all the correct answers.

☐ create an emergency fund.

☐ spend all her income on immediate needs.

☐ develop a savings and investment plan.

☐ ignore her debts and focus only on savings.

☐ avoid setting clear and achievable goals.

Explanation:

To determine the correct steps for Daisy's financial plan:

• "Create an emergency fund" aligns with her goal of a safety net for unexpected expenses.
• "Develop a savings and investment plan" supports her financial planning (income, expenses, goals).
• "Spend all income on immediate needs" is unwise (no savings/emergency fund).
• "Ignore debts" is poor financial practice.
• "Avoid clear goals" contradicts her goal-setting step.

Answer:

A. Create an emergency fund, C. Develop a savings and investment plan