Personal Finance
a person or organization that uses a product or service.
what is a consumer?
The value of a persons assets exceeds or falls behind their liabilities.
what is net worth?
Save a 500$ emergency fund
what is the first foundation?
expense that remains the same from month to month
what is a fixed expense?
the amount you earn before taxes and other payroll deductions
What is Gross income?
money owed to another person or company
Debt
Anything a person owns
What are assets?
Get out and stay out of debt
What is the second foundation?
expense for things you don't need?
what is a discretionary expense?
Financial debts or obligations
what are Liabilities?
Pay cash for your car
what is the third foundation?
expense that varies in dollar amount from month to month but that you can expect to have every month
what is a variable expense?
all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
what is personal finance?
what a person earns after payroll taxes and other deductions are taken out; take home pay
what is net income?
Pay cash for college
what is the fourth foundation?
a cash-flow plan where the goal is for the total income minus the total expenses to equal zero
what is a zero-based budget?
used to describe a person or household whose monthly income is devoted to expenses and has little to no savings
what does paycheck to paycheck mean?
a plan of action that allows a person to meet not only their immediate needs but also their long-term goals
What is a financial plan?
build wealth and give
What is the fifth foundation?