Podcast
Questions and Answers
What percentage of income is recommended to come from savings or investments during the Fine Tuning/Asset Allocation stage?
What percentage of income is recommended to come from savings or investments during the Fine Tuning/Asset Allocation stage?
What is the primary purpose of a Checking Account?
What is the primary purpose of a Checking Account?
Which step is crucial in managing debt?
Which step is crucial in managing debt?
What is the recommended percentage to save for retirement?
What is the recommended percentage to save for retirement?
Signup and view all the answers
What is the benefit of having a joint account?
What is the benefit of having a joint account?
Signup and view all the answers
What is the purpose of a budget?
What is the purpose of a budget?
Signup and view all the answers
What is a key component of personal finance?
What is a key component of personal finance?
Signup and view all the answers
What is the benefit of reviewing your credit report?
What is the benefit of reviewing your credit report?
Signup and view all the answers
What type of income is received during the start-up stage?
What type of income is received during the start-up stage?
Signup and view all the answers
What is a recommended strategy to avoid hidden costs in data plans?
What is a recommended strategy to avoid hidden costs in data plans?
Signup and view all the answers
What is a 'DO' in terms of better spending habits?
What is a 'DO' in terms of better spending habits?
Signup and view all the answers
When is it recommended to pay with cash?
When is it recommended to pay with cash?
Signup and view all the answers
What is a strategy to reduce spending on grocery bills?
What is a strategy to reduce spending on grocery bills?
Signup and view all the answers
What is a reason to review data usage?
What is a reason to review data usage?
Signup and view all the answers
What is a recommended strategy for increasing income?
What is a recommended strategy for increasing income?
Signup and view all the answers
What is a recommended strategy for managing debt?
What is a recommended strategy for managing debt?
Signup and view all the answers
What is one of the potential drawbacks of not planning your finances?
What is one of the potential drawbacks of not planning your finances?
Signup and view all the answers
What is one way to boost your income?
What is one way to boost your income?
Signup and view all the answers
What is the first step in creating a budget?
What is the first step in creating a budget?
Signup and view all the answers
What is one use for your tax refund?
What is one use for your tax refund?
Signup and view all the answers
When should you reevaluate your budget?
When should you reevaluate your budget?
Signup and view all the answers
What is a financial life stage?
What is a financial life stage?
Signup and view all the answers
What is a consequence of not doing your budget?
What is a consequence of not doing your budget?
Signup and view all the answers
What is one way to manage debt?
What is one way to manage debt?
Signup and view all the answers
Study Notes
Personal Finance
- Financial management involves budgeting, saving, and spending monetary resources over time, considering financial risks and future life events.
- "Growing your money is as important as managing it."
- Components of finance include income, taxes, insurance, debt, expenses, wages, retirement, and investments.
Financial Life Stages
- Start-up stage: income source is salary.
- Build-up stage: income from savings and investments (20% of savings).
- Retirement stage: income from savings and investments is the only source to support.
Managing Your Money
- Steps to manage your money:
- Create a budget.
- Understand your expenses.
- Consolidate your debt.
- Create an emergency fund.
- Save 10-15% for retirement.
- Review your credit report.
- Four accounts to use:
- Checking accounts: unrestricted spending, no interest, maintaining balance required.
- Savings account.
- Money market account.
- Certificate of deposits (CDs).
Financial Success
- Keys to financial success:
- Know your financial needs.
- Know how to meet those needs.
- Know how to manage your earnings and expenses.
Budgeting
- Five steps to create a budget:
- Start with your goals.
- Know your income.
- Total your monthly expenses.
- Create a realistic budget.
- Revisit your goals and expenses.
- When to reevaluate your budget:
- Getting a raise.
- Buying a house.
- Getting married.
- Having a baby.
- Recovering from a financial emergency.
- Losing a job.
- Moving to a new city.
- Paying off debt.
Spending Habits
- Dos:
- Buy generic products.
- Use an ordinary ATM.
- Buy stocks instead of gambling.
- Avoid temptation for low prices.
- Start shopping.
- Pay as you go and know exactly what you're spending.
- Don'ts:
- Buy brand name products.
- Use an out of network ATM.
- Buy lottery tickets.
- Buy too many appliances.
- Run a cab.
- Impulse shop.
Avoiding Hidden Costs
- BLOATED DATA PLAN:
- Review your data usage.
- Don't pay for data you don't need.
- Upgrade data plan instead of paying high fees.
- MONTHLY PHONE PAYMENTS:
- Avoid early upgrades.
- OTHER HIDDEN COSTS:
- Impulse shopping.
Joint Accounts
- Advantages:
- Convenience.
- Easy to keep track of bills.
- Teamwork.
- Disadvantages:
- Potential for fights about money.
- Highlights different spending styles.
- No privacy.
- Difficulty to separate.
Income Boost
- Five ways to boost your income:
- Get a second job.
- Freelance.
- Drive around town.
- Join a direct company.
- Rent out your home.
Tax Refund
- Uses for your tax refund:
- Put it towards your retirement.
- Pay off credit and debt.
- Add to your emergency fund.
- Save for big-ticket purchases.
- Buy stocks.
- Invest for yourself (e.g., improve your career).
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Learn about financial management, including budgeting, saving, and spending, as well as components of finance and different life stages.
