PERSONAL FINANCE

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FINANCIAL ISSUES THAT CAN AFFECT AN INDIVIDUAL.

PERSONAL FINANCE

PROCESS OF PLANNING EVERY ASPECT OF YOUR PERSONAL FINANCES,

PERSONAL FINANCE PLANNING

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

BANKRUPTCY

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

LIQUID ASSETS Signup and view all the answers

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

OPPORTUNITY COST Signup and view all the answers

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

PERSONAL FINANCIAL PLAN Signup and view all the answers

PROCESS OF FORECASTING FUTURE EXPENSES AND INCOME

BUDGETTING Signup and view all the answers

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

ASSETS Signup and view all the answers

DIFFERENCE BETWEEN ASSETS AND LIABILITIES.

NET WORTH Signup and view all the answers

WHAT WE OWE, OR OUR DEBT

LIABILITIES Signup and view all the answers

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

EQUITY Signup and view all the answers

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

INCOME Signup and view all the answers

MONEY OWED TO GOVERNMENT ON EARNED INCOME.

INCOME TAXES Signup and view all the answers

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

IMPACT TO BUDGE AND IN GENERAL Signup and view all the answers

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

LIQUIDITY PLAN Signup and view all the answers

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)

MONEY MANAGEMENT Signup and view all the answers

INVOLVES MAKING DESICIONS ABOUT GETTING CREDIT AND USING CREDIT.

CREDIT MANAGEMENT Signup and view all the answers

"RENT" ON MONEY YOU BORROW

INTEREST Signup and view all the answers

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

PAYMENT TERMS Signup and view all the answers

POSSIBILITY OF FINANCIAL LOSS

RISK Signup and view all the answers

MONEY RECEIVED FROM VARIOUS SOURCES

CASH INFLOW Signup and view all the answers

MONEY PAID OUT OR SPENT

CASH OUTFLOW Signup and view all the answers

THOSE YOU PLAN TO ACCOMPLISH WITHIN THE NEXT YEAR.

SHORT-TERM GOALS Signup and view all the answers

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

INTERMEDIATE-TERM GOALS Signup and view all the answers

WILL TAKE MORE THAN FIVE YEARS TO ACCOMPLISH.

LONG-TERM GOALS Signup and view all the answers

ANYTHING ON WHICH WE SPEND MONEY

EXPENSE Signup and view all the answers

EXPENSE THAT REMAIN THE SAME FROM PERIOD TO PERIOD

FIXED EXPENSE Signup and view all the answers

EXPENSES THAT MAY CHANGE FROM ONE PERIOD TO THE NEXT

VARIABLE EXPENSE Signup and view all the answers

COMPONENTS OF FINANCIAL PLAN

<ol> <li>BUDGETING AND TAXES</li> <li>LIQUIDITY MANAGEMENT</li> <li>PERSONAL FINANCING</li> <li>PROTECTING YOUR ASSETS AND INCOME</li> <li>PERSONAL INVESTING</li> <li>RETIREMENT AND ESTATE PLANNING</li> <li>COMMUNICATION AND RECORD KEEPING</li> </ol> Signup and view all the answers

FOUR STEPS FOR CREATING BUDGET

<ol> <li>DETERMINING YOUR NET WORTH</li> <li>ESTABLISHING YOUR INCOME</li> <li>IDENTIFYING YOUR EXPENSES</li> <li>CONSIDERING THE IMPACTS OF TAXES</li> </ol> Signup and view all the answers

CAN CATEGORIZE FINANCIAL GOALS IN TERMS:

<ol> <li>SHORT-TERM GOALS</li> <li>INTERMEDIATE-TERM GOALS</li> <li>LONG-TERM GOALS</li> </ol> Signup and view all the answers

STEPS OF FINANCIAL DECISION MAKING

<ol> <li>ESTABLISH YOUR FINANCIAL GOALS</li> <li>EVALUATE YOUR CURRENT FINANCIAL POSITION</li> <li>IDENTIFY AND EVALUATE OPTIONS FOR ACCOMPLISHING YOUR GOALS</li> <li>PICK THE BEST PLAN</li> <li>PERIODICALLY EVALUATE YOUR PLAN</li> <li>REVISE YOUR FINANCIAL PLAN AS NECESSARY</li> </ol> Signup and view all the answers

PERSONAL FINANCE

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Questions and Answers

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

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