Vocab 1
Safe Deposit Box
Rented storage compartment for valuables.
Balance Sheet
Lists Value-Owns-Owe=Net Worth
Net Worth
Difference between owns and owes.
Strategies To Increase Savings
Eliminate your debt- Set saving goals- Utility savings- Spend to save- Pay yourself first
Types Of Assets (5 Most Common)
Equities- Fixed Expenses- Income Securities- Cash- Marketable- Commodities- Real Estate
Assets
Item of value that people own.
Deficit
Spends more than earns.
Market Value
Price at which a prop can be sold at.
Financial Documents (Money Management)
Used for reporting financial information about a business, in a standardized format.
Understanding Net Worth (Aspects Of The Personal Balance Sheet)
The amount by which your assets exceed your liabilities.
Money Management
Method of planning to get most of money.
Take Home Pay
Income after taxes and other deductions.
Insolvency
When liabilities are greater than assets.
Variable Vs. Fixed Expenses
Variable expenses are costs that can change regularly.
Fixed expenses are costs that typically remain the same in price and frequency.
Discretionary Income
Money left over after paying for essentials.
Surplus
Extra money can be saved, depending on the goals values.
What Goes On a Personal Balance Sheet And Cash Flow Statement
The balance sheet shows the assets and liabilities.
While the cash flow statement shows cash coming in and going out.
Budget
Plan for using money fits, wants and needs.
Liabilities
Dept a person owes.
How To Calculate Net Worth On A Personal Balance Sheet
Subtract your total liabilities from your total assets.