Personal Finance: Budgeting & Liquid Assets

• Lindsey got her first job at the mall and is scheduled to work Saturday at 10:00 a.m.
• She is thinking about her earnings, saving for college and phone, and getting a credit card.
• Lindsey is thinking about her planned trip to the water park with Alicia and Deanna, and she realizes she will have to cancel because of work.
• She and her friends have been planning to go to the waterpark that saturday, so her friends will be irritated at her for cancelling.
• Having a job means Lindsey will have to do a little more adjusting and planning.
• Personal finance affects an individual's financial issues.
• Personal financial planning plans every aspect of one's personal finances.
• Learning personal finance requires learning new vocabulary.

Steps to Personal Financial Planning

• Creating a budget manages liquid assets.
• Liquid assets are rapidly converted to cash without risking significant loss.
• Cash is an example of a liquid asset.
• Planning for borrowing and insuring of your assets like cars and houses is another step in personal financial planning.
• Planning for investing and ultimate retirement is another step.
• Choosing the type of career to pursue is the most critical decision.

Fastest Growing Occupations 2010-2020

• Nursing Aides, Orderlies, and Attendants grew by 302.0 (20.1%) to 24,010.
• Childcare Workers grew by 262.0 (20.4%) to 19,300.
• Bookkeeping, Accounting, and Auditing Clerks grew by 259.0 (13.6%) to 34,030.
• Cashiers grew by 250.2 (7.4%) to 18,500.
• Elementary School Teachers, Except Special Education grew by 248.8 (16.8%) to 51,660.
• Receptionists and Information Clerks grew by 248.5 (23.7%) to 25,240.
• Janitors and Cleaners, Except Maids and Housekeeping Cleaners grew by 246.4 (10.7%) to 22,210.
• Landscaping and Groundskeeping Workers grew by 240.8 (20.9%) to 23,400.
• Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products grew by 223.4 (15.6%) to 52,440.
• Construction Laborers grew by 212.4 (21.3%) to 29,280.
• Medical Secretaries grew by 210.2 (41.3%) to 30,530.
• First-Line Supervisors of Office and Administrative Support Workers grew by 203.4 (14.3%) to 47,460.
• Carpenters grew by 196.0 (19.6%) to 39,530.
• Waiters and Waitresses grew by 195.9 (8.7%) to 18,330.
• Security Guards grew by 195.0 (18.8%) to 23,920.
• Teacher Assistants grew by 191.1 (14.8%) to 23,220.
• Accountants and Auditors grew by 190.7 (15.7%) to 61,690.
• Licensed Practical and Licensed Vocational Nurses grew by 168.5 (22.4%) to 40,380.
• Physicians and Surgeons grew by 168.3 (24.4%) to 111,570.
• Medical Assistants grew by 162.9 (30.9%) to 28,860.

Comparison of Income Among Education Levels

• Master's degree has a median level of annual income of $66,144.
• Bachelor's degree has a median level of annual income of $53,976.
• Associate's degree has a median level of annual income of $39,844.
• Some college has a median level of annual income of $37,024.
• High School diploma has a median level of annual income of $32,552.
• Less than high school diploma has a median level of annual income of $23,088.

Reasons to practice Personal Financial Planning

• Helps in managing debts.
• Streamlines investments.
• Improves the standard of living.
• Provides financial security.
• Builds your savings pot.
• Allows right asset allocation
• Helps in calculating the right insurance cover.
• Beneficial in achieving long-term goals.
• Lindsey noticed she only took home $62.45 this week.
• If Lindsey worked 10 hours and made $8 an hour, then her employer withheld $17.55 from her paycheck
• Personal finance helps with making informed decisions about one's personal situation.
• Opportunity Cost is the cost of pursuing one option instead of another, and also expressed as the value of the activity you give up.
• Financial security makes life easier.

What to plan for.

• Education is one of the major decisions that will be required to make very soon and includes whether to pursue a college degree or other type of post-high school education.
• Establish an emergency fund for any future financial crisis.
• The earlier you begin, the less money you have to set aside on a regular basis when buying a home.
• Families are expensive.
• It is possible to begin to build your wealth at an early age for retirement.
• Charitable giving is donating some of one's money to worthy causes, and is an important component of many financial plans.

Sources of information

• You can use the internet to research prices of major purchases or look up investment performance data.
• Financial planners or advisors can help make financial decisions.
• Credentials indicate a certain level of knowledge about financial planning.
• Stick with planners who have reputable credentials like Certified Financial Planner (CFP) or Certified Public Accountant (CPA).