2- Guided Notes-Financial Planning

Posljednje ažuriranje 2 months ago

2 questions

Instrukcije

By only focusing on the yellow highlighted areas, fill in the blanks with the correct words. Watch out for typos.

FINANCIAL STATEMENTS

Three main money management activities are

Personal Financial Statements

Personal financial statements tell you

Two documents you create yourself are the and the

Main purpose of personal financial statements are to:

Balance Sheet

A balance sheet (i.e., or statement of financial position) is a financial statement that reports what an individual or family .

null

minus equals

In other words, computing net worth

minus equals

Individuals and families can increase their net worth by any one of the following:

Cash Flow Statement

Cash flow is the actual and of cash during a given time period
Cash flow statement (i.e., personal income and expenditure statement) summarizes cash for a given period

A Plan for Effective Budgeting

A budget, or , is necessary for successful financial planning
Budgeting will help you do the following:

Budgeting is an , and you will need to your spending plan on a regular basis

BUDGETING

Obavezno

2- Guided Notes-Financial Planning

Posljednje ažuriranje 2 months ago

2 questions

Instrukcije

By only focusing on the yellow highlighted areas, fill in the blanks with the correct words. Watch out for typos.

FINANCIAL STATEMENTS

Three main money management activities are

Personal Financial Statements

Personal financial statements tell you

Two documents you create yourself are the and the

Main purpose of personal financial statements are to:

Balance Sheet

A balance sheet (i.e., or statement of financial position) is a financial statement that reports what an individual or family .

null

minus equals

In other words, computing net worth

minus equals

Individuals and families can increase their net worth by any one of the following:

Cash Flow Statement

Cash flow is the actual and of cash during a given time period
Cash flow statement (i.e., personal income and expenditure statement) summarizes cash for a given period

A Plan for Effective Budgeting

A budget, or , is necessary for successful financial planning
Budgeting will help you do the following:

Budgeting is an , and you will need to your spending plan on a regular basis

BUDGETING

Obavezno

What is a budget?

• A financial for dividing up your income among saving and spending options.

- Helps you achieve goals.

- Prevents financial .

- Types: , , yearly

How to start a budget?

First:

- Track all of your for a month.

Keep a or a of every penny you spend for a month.

▪ Example: Bills, eating out, clothing etc.

- Calculate

▪ Find ways to decrease spending

What is income?

• Income: money that is .

• Could be wages from , public assistance, , alimony or other sources.

Gross Income:

• Total income without .

Net Income:

• Gross income-minus , ,

Figuring Out Expenses

• Fixed Expenses

- The amounts that you have to spend o It is easy to plan ahead because you know EXACTLY how much money is due o Examples of Fixed Expenses: , , Blank 20. .

• Variable/Flexible

- Amounts that you can to spend or not to spend.

- You have to decide which of your options you .

- Sometimes difficult to .

- Examples of Variable/Flexible: , , .

Developing Your Budget

• List all of your .

• List some of your .

• your needs and wants to get your total expenses.

• Write down your income.

• expenses from your income.

• Any money you have left will and should be your .