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19 Cards in this Set
- Front
- Back
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Personal cash flow statement |
A financial statement that measures a person's income and expenses |
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Factors affecting income |
1. Stage in career path 2. Type of job 3. Number of income earners in household |
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Factors affecting expenses |
1. Size of family 2. Age 3. Personal consumption behavior |
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Budget |
A cash flow statement that is based on forecasted cash flows for a future time period |
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Envelope method |
Place allocated money for the a month for an expense and can only sirens that |
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Pay yourself first method |
Set aside money for savings each psychiatry before touching your money |
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Personal balance sheet |
A summary of assets, liabilities, and net worth |
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Liquid assets |
Financial assets that can be easily converted into cash without a loss in value |
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Household assets |
Items normally owned by a household such as a car or furniture |
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Bonds |
Certificates issued by borrowers to raise funds; interest earned while bond is held |
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Stocks |
Certificates representing partial ownership or equity of a firm |
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Mutual funds |
Investment companies that sell units to individuals and invest the proceeds in an overall portfolio of investment instruments such as bonds or stocks |
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Real estate |
Rental property and land |
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Rental property |
Housing or commercial property that is rented out to others |
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Current liabilities |
Personal debts that will be paid in the near future |
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Long-term liabilities |
Debt that will be paid over a period longer than one year |
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Liquidity radio |
Liquid assets/current liabilities; better when the number is higher |
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Debt to asset ratio |
Total liabilities / total assets; better when this number is low |
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Savings rate |
Savings/disposable income during a time period |
