Budget
This is what shows your income and expenses each month
What is a Budget?
You put your money into this and hope that it grows
Investment
When you have to borrow money from someone or a company
What is Debt?
When you get paid by the hour
Wage or job
How much of something there is
Supply
This is an expense that usually happens only once
One Time Expense
Before the investment, you have to decide how much ____ it has.
Risk
The cost of interest is often 18% to 36% per year
Credit Card interest
When you get paid for the value you created
How much people want a product
Demand
Name two kinds of taxes & ask a friend for a third
Property Tax, Sales Tax, Income Tax, Capital Gains Tax, Estate Tax
Each year your investment goes up & then you reinvest that amount into the next year and the next year and the next year...
Compounding interest (the 8th wonder of the world)
The cost of interest is often 5% to 7% per year (or less)
Real estate interest
When an investment goes UP in value
Appreciation
A way to make money (reward) with low risk
Opportunity
This is an expense that happens every month, over and over again
Recurring expense
The lowest risk investment (according to teacher Ryan)
Real Estate
What is a credit card or car loan
This is what makes our service better than the competition
Competitive Advantage
This is what says if you are a good person for a loan (or credit card) or a bad person for a loan
Credit Score
Number Two Rule
Save NOW and Invest ASAP
A very high risk investment (according to Ryan)
Venture Capital or Crypto Currency
An example of 'good debt'?
Debt that is used to buy an investment (like real estate)
Something that makes it difficult for our business to succeed
Limiting Factor
Number One Rule
Never get credit card debt