Budgeting
What is a Budget?
A tool to track your Income, Expenses, and Saving
What is Debt?
Owing money, usually to a bank.
A Tax is.....?
Money paid to the government.
What is a Stock?
A share of ownership in a public corporation.
What is the goal of Real Estate investing?
Build wealth through Cash Flow, Appreciation, Loan Paydown, and Tax benefits.
What do you call the money you make?
Income
What is a Credit Score?
What does do you pay when you make money?
Income Tax
What is a Stock Symbol?
A letter abbreviation of a specific stock or other asset traded on the stock market.
What does the wealth generator "Loan Paydown" mean?
Each month you make a payment and OWE LESS to the bank.
What are the things we spend money on?
Expenses
What are the 4 common types of Debt?
Mortgage (Home Loan), Car Loan, Credit Card, and Student Loan
What does the government spend the most tax dollars on? (Over $1 Trillion)
Social Security, Medicare, Interest on Debt
What is an Index?
A group of stocks combined together.
Appreciation means ...
Property gaining value over time.
What minimum percent of our income should be saved/invested each month?
20% or more
Describe the difference between Debit Card and Credit Card.
Debit card is money spent from your Checking account. Credit Card is borrowed money you have to pay back with interest.
If your income is $2,000 and you pay 25% in taxes, what is your net income?
$1,500
What does 52-week High and Low mean?
The highest and lowest price of a stock over the past year.
What is Cash Flow?
Rental Income minus expenses
What is the 50/30/20 rule?
50% of income spent on Needs
30% on Wants
20% on Saving/Investing
Describe how Interest will affect your repayment of a loan.
Interest increases the amount you repay. Money you pay in addition to the money borrowed.
A business owns their own building and has many employees.
What are at least 2 Taxes they will need to pay?
Payroll Tax, Corporate Income Tax, and Property Tax
The S&P 500 index averages ___% gain every year over time.
10-12%
Rent is $2,200
Expenses are $1,750
What is the Cash Flow?
$450