Saving
it takes up to 2 years to reach
Short Term
what is the equation for Net Worth
Assets - Liability
Save $4,000 for a beat up honda civic
Pay cash for your car
You take out a $2,000 loan. You end up paying back $2,100
Interest
Have an amount in mind. Say, I’m going to save $10,000 for a house
Specific
takes longer than 5 years to reach
Long-Term
your assets are greater than your debts
Positive Net Worth
You have a bit of money left at the end of the month and you donate it to Red Cross.
Build wealth and give
A person or organization that uses a product or service
Consumer
Plan to accomplish your goals by a specific date
Time Sensitive
A plan of action that allows a person to meet their immediate needs and long-term goals
Financial Plan
all financial items items owned by the individual, such as a house or a car
assets
Your out and your car breaks down, how do you pay for repair?
Save a $500 emergency fund
The granting of a loan and the creation of debt
Credit
Write down your goals
Written
Takes 2-5 years to reach
Medium-Term
financial debts or obligations
liabilities
Make sure everything on credit is paid off by the end of the month
Get out and stay out of debt
What percentage of those in the US live Paycheck to Paycheck?
80%
get the input about your goals from people you trust, but make the decision your own
Yours
what are the percentages of the personal finance pie?
80% behavior 20% head knowledge
The money you bring home after taxes are taken out
Net Income
You get a higher education without any debts. scholarships and savings paid for your entire 4 years so you did not have to work more than 10 hrs per week for spending money.
Pay cash for college
Average amount of debt per person
$34,000
Break your big goal into smaller chunks
Measurable