PERSONAL FINANCE

FINANCIAL ISSUES THAT CAN AFFECT AN INDIVIDUAL.

PROCESS OF PLANNING EVERY ASPECT OF YOUR PERSONAL FINANCES,

LEGAL PROCESS IN WHICH A COURT TAKES OVER SOME OF THE FINANCES OF A PERSON WHO IS UNABLE TO PAY HIS OR HER BILLS.

SOMETHING OWNED THAT CAN BE RAPIDLY CONVERTED TO CASH WITHOUT A RISK OF SIGNIFICANT LOSS.

COST OF PURSUING ONE OPTION INSTEAD OF ANOTHER EXPRESSED AS THE VALUE OF THE ACTIVITY YOU GAVE UP.

INVOVLVE SPECIFYING FINANCIAL GOALS AND DESCRIBING IN DETAIL THE SPENDING FINANCING, AND INVESTING PLANS NEEDED TO REACH THOSE GOALS.

PROCESS OF FORECASTING FUTURE EXPENSES AND INCOME

ANYTHING OWNED, SUCH AS CARS, MOTORCYCLES, AND HOMES.

DIFFERENCE BETWEEN ASSETS AND LIABILITIES.

WHAT WE OWE, OR OUR DEBT

AMOUNT OF A SPECIFIC ASSET THAT WE OWN AFTER SUBTRACTING ANY LIABILITIES.

MONEY COMING IN THROUGH WAGES EARNED, ALLOWANCE, OR OTHER SOURCES.

MONEY OWED TO GOVERNMENT ON EARNED INCOME.

THE MORE MONEY YOU MAKE, THE MORE INCOME TAXES YOU HAVE.

HOW MUCH READILY AVAILBALE CASH YOU HAVE ON HAND FOR MEETING IMMEDIATE WANTS AND NEEDS.

INVOLVES MAKING DECISIONS ABOUT HOW MUCH CASH OR LIQUID ASSETS TO KEEP IN RESERVE AND HOW MUCH TO INVEST IN LIQUID ASSETS, SUCH AS REAL ESTATE (BUILDINGS/LAND)

INVOLVES MAKING DESICIONS ABOUT GETTING CREDIT AND USING CREDIT.

"RENT" ON MONEY YOU BORROW

INCLUDE THE SPECIFIC INFORMATION ABOUT THE INTEREST RATE, THE LENDER WILL CHARGE AND PERIOD OF PAYING BACK LOAN.

POSSIBILITY OF FINANCIAL LOSS

MONEY RECEIVED FROM VARIOUS SOURCES

MONEY PAID OUT OR SPENT

THOSE YOU PLAN TO ACCOMPLISH WITHIN THE NEXT YEAR.

THOSE YOU AIM TO MEET WITHIN THE NEXT 1 TO 5 YEARS.

WILL TAKE MORE THAN FIVE YEARS TO ACCOMPLISH.

ANYTHING ON WHICH WE SPEND MONEY

EXPENSE THAT REMAIN THE SAME FROM PERIOD TO PERIOD

EXPENSES THAT MAY CHANGE FROM ONE PERIOD TO THE NEXT

COMPONENTS OF FINANCIAL PLAN

FOUR STEPS FOR CREATING BUDGET

CAN CATEGORIZE FINANCIAL GOALS IN TERMS:

STEPS OF FINANCIAL DECISION MAKING