Net Worth
Something that has positive economic value.
Asset
All of the monthly expenses associated with the goods and services that keep your life stable.
Needs
Please identify the expense as either:
Fixed, Variable or Discretionary Spending
Season tickets to Great Adventure
Discretionary Spending
Expenses which are the same amount every month.
Fixed Expenses
When your monthly income is greater than your monthly expenses.
Positive Cash Flow
Your financial wealth at one point in time.
Net Worth
Goods and services that are not essential to daily living, but are often things that make people happy or may make life seem a little easier or a little more special.
Wants
Please identify the expense as either:
Fixed, Variable or Discretionary Spending
Rent
Fixed Expense
True or False
Adding up all your assets is an accurate way of calculating your Net worth.
False
Experts recommend saving at least what percentage of your income?
10%
Something that you owe, something that has negative economic value
Liability
Want or Need?
Rent
Need
Please identify the expense as either:
Fixed, Variable or Discretionary Spending
Car Loan Payment
Fixed Expense
A financial Plan that compares your income to your expenses.
Budget
When you spend money on something you want versus something you need
Discretionary Spending
What is the formula for net worth?
Assets minus Liabilities = Net Worth
Want or Need?
$300 sneakers
Want
Please identify the expense as either:
Fixed, Variable or Discretionary Spending
Electric Bill
Variable Expense
Expenses which fluctuate throughout the year.
Variable Expenses
When your monthly expenses are greater than your monthly income.
Negative Cash Flow
You own a house worth $350,000, but have a $400,000 mortgage on the house.
Is your house an asset or liability?
Asset
Want or Need?
Vacation
Want
Please identify the expense as either:
Fixed, Variable or Discretionary Spending
Grocery Bill
Variable Expense
When you save at least 10% from every paycheck.
Pay Yourself First
How do you maximize your net worth?
By maximizing your assets and minimizing your liabilities.