Personal Finance
Chris Cannard, Van Trinh, Jommel Esteybar,
Edward Sy, Cricket Williams, Trey Vogel
San Jose State University
Abstract
Many people assume that handling personal finances is straightforward and can be done with little to no preparation. This paper delves into the many different aspects of personal finance. It discusses the tools that we are learning in class and explains how these tools that can be used to save for retirement. It offers tips to improve your financial standing both now and in the future. And finally, it compares these tips with advice offered by an expert, Suze Orman. Everyone needs to learn how to properly prepare their finances to reach their goals. While doing so can be easy and rewarding, neglecting
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When you are ready to make your financial investments, you will need to study your finances to figure out how much to invest which can be done by using a simplified Income Statement.
Your income statement will list all of your incomes, debts, and taxes so that you can properly assess how much money you have for future investments (Brigham, 2007). It is critical to account for all of your debts to get a legitimate view of your finances. For instance, do not forget to account for food, gas, cell phone bill, entertainment, and other non-fixed monthly bills. In order to create an investment plan that you will stick to, you must include reasonable living expenses. If you do not include items such as entertainment, then long term acceptance of your investment plan will be dubious at best. Once you have a reasonable income statement created, you will need to figure out your Debt to Income ratio. This is very easy to create with the information you have included in your income statement: add your monthly income and payments and then divide your monthly income by your monthly payments, if your ratio is above fifty percent, than you should work towards lowering your debt with a goal of less than 25 percent (Brigham, 2007). The lower your debt ratio, the higher your credit score will be which will allow you to be approved for loans with better interest rates. Knowing the true interest rate on a loan is
Despite the importance of finance, accounting, and consumer intelligence, these topics are typically neglected in high schools. Unfortunately, personal finance is often learned by trial and error. The problem with this method of learning is that it only takes one costly financial mishap to set you back for years. This is why I created a basic personal finance book for total beginners. With these concepts you can use the other books in the Smart Money series to further build your knowledge of personal finance topics.
* Create a budget- creating a budget will help you not spend more money than you have. Creating a budget will also help you stay out of debt.
Whew, where to start? The personal finance class through Dame Ramsey’s Foundations in Personal Finance textbook and video series really had a lot of useful information, and it is hard to pick out the most impactful chapters and topics. However, I think the most important stuff for me was his five foundations for financial success, which were reinforced throughout the course. I am not downplaying the other important stuff in the course, including learning about the history of credit, budgeting, consumer awareness, investing, insurance, and taxes, but I think that mastering the fundamentals is important, which is why I am choosing to highlight them in this paper.
The process of transferring the cost of metal ores and other minerals removed from the earth to an
1. If you are borrowing money and paying interest, would you prefer an interest rate that compounds annually, quarterly, or daily? Why? (2-4 sentences. 1.0 points)
This course provides an overview of the elements necessary for effective personal financial planning and the opportunity to apply the techniques and strategies essential to this understanding. Primary areas of study include creating and managing a personal budget, understanding and paying taxes, working with financial institutions, wise use of credit cards and consumer loans, financing automobiles and homes, and the use of insurance for protecting one’s family and property.
c. Smaller payments mean more time in debt. d. Your lower interest loans also get rolled into the deal so you end up with minimal savings.
1. Describe a real or made up but realistic situation that could cause you or someone you know to have to use money from a financial reserve. (3-6 sentences. 2.0 points)
Chapter 8 addresses the financial questions an entrepreneur must ask before starting a business venture or expanding an existing one. Such questions as how you plan to use the money and how you plan to return the money back to the lenders. When carefully use of loans can help boost the business. There are also demerits coupled with borrowing money, such as interest charges and debt can inhibit growth.
The article will guide you step-by-step on how to start your financial budget. If you already have over $5,000+ in Investment Money put back, you can skip past this article. However, since the intention of this article is to be able to help everyone, I 'm starting at the beginning. Also, there are a variety of sub-topics covered in this article that may be beneficial to you even if you do already have enough to begin investing. To be successful at anything in your life you have to be committed and informed. Investing in Real Estate (or anything else) is no different. Creating and sticking to a budget is the most fundamental act that an investor can do. A budget forms a basic chart of your income and expenses. It can also be used to track and monitor bill payments. Budgets give you a visual idea of what you can do with your money using it as a guide to better manage your money. To get yourself going in the right direction, however, you 'll need to make sacrifices. If you work hard and sacrifice now, then you have the opportunity to be your own boss, retire early, and enjoy life as you should! The following Step-By-Step guide will get you to where you want to be. A Budget is a fundamental guide... The first thing you have to do is grab a piece of paper and something to write with. Creating a budget may seem like a pain at first, but as you learn to manage your money you 'll start to enjoy updating your budget. If you 've every balanced a check book, then you already have a
1. What information from your daily spending records could help you achieve your financial goals?
Properly understanding personal financing is a key factor in life. It helps create a balanced budget, manage debt, and build good credit. The reason that understanding personal finances is so important is because it helps set up a successful life. Rather than constantly having to worry and having to resort to a life of crime in order to pay off the ever growing debt that is piling up at a rapid pace. Properly understanding financing can help you explore the world, live life comfortably and live like everyone dreams they can.
Try to make a budget, it will be your blueprint for your finances. The first step for anyone wanting to take control of their finances is to make a budget. A budget will allow you to understand where your money is going and enable you to adjust your spending by designating how much you can afford. Creating a budget is a good idea for everyone, but especially for individuals with limited income. Write down your budget, with specific categories of spending, and stick to it. Start slowly by using a percentage on how much you will save versus spend. A plan doesn’t work unless you work the plan.
A. What financial tools described in this chapter can help you make better financial decisions?
helps a person to manage his personal finances and also to describe the three products of