Which one calculates Net Worth?

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Presentation transcript:

Which one calculates Net Worth? Income - Expenses Liabilities + Assets Assets - Liabilities Assets – Net Worth

Which one is not liability ? Credit Card bill Car Loan Mortgage Home

Which is not an Asset ? Jewelry Credit card bill Furniture Computer

A Net Worth Report consists of what ? Income and Expenses Time Frames Assets and Liabilities Goals

A financial document that analyzes net worth: Income Statement Balance Sheet Spending plan

A financial document that calculates if you are operating at a net profit or a net loss: Income Statement Balance Sheet Spending plan

A financial document that looks into the future and estimates spending: Income Statement Balance Sheet Spending plan

A long term goal is set for ? Next Month 1 Year Next week 5 Years or more

Goals must be ? Short term. Happy Reasonable Complex

An income statement is analyzed: Weekly Monthly Daily yearly

An example of a fixed expense is a: Cell phone bill Utilities bill Mortgage Food bill

How do you determine the quality of life you want? Values, needs, wants, and financial goals

Open your Balance Sheet and Income Statement you created in Excel File, save as “financial statements review” (a new doc. Is now created) Update the amounts:

Balance Sheet amounts: ASSETS: Cash on hand:5000 Checking account:1800 Savings account:3000 Personal property:1200 Car #1 (paid in full):8000 LIABILITIES: Car #2 (loan): 12000 Student Loan:25000 Credit Card:800

Income Statement amounts for September: INCOME: (your salary is $28,000 / year) Wages:__________(=36,000 / 12) 12 months a year (entry-level teaching salary Monetary Gifts: 50 EXPENESES: Fixed: Savings per month: calculate 10% of your wages Mortgage (or rent): you live at home, pay $75 a month Graduate School tuition: $0, you receive tuition reimbursement from your work Car insurance: 175 Taxes (28% of wages): you calculate Variable: Telephone: 0 Utilities (water, electric): 25 Gas for car: 60 Telephone / Cell: 55 Car maintenance / repairs: 50 Entertainment: 100 Clothing: 75 Personal Care: 35 Food: 50