1. ASSETS – LIABILITIES = EQUITY
the difference between the value of the assets and the value of the liabilities of something owned
ASSETS – LIABILITIES = EQUITY

2. Buying plan
Is an organized method for making good buying decisions. It helps you stretch your limited resources. It will also help prevent “buyer’s remorse”, which is regret over buying decision you have made. When you make a major purchase or spend a large sum of money, a buying plan can aid in the decision-making process. A buying plan is a more detailed extension of a budget

3. Step 1: Define your spending goal
Items you buy should be selected to meet your wants and needs. By evaluating your wants and needs before you shop, you will be better prepared to make good buying decisions. Because your resources will likely be limited, you should consider the Opportunity Cost
Of the item.
What other items must you forego buying in order to buy this item? Consider how the item relates to meeting the goals you have set in your budget

4. Step 2: choose the item to buy
Choose items that will meet your goals. This may include new or used, high-quality, or high, medium, or low-cost choices. You may also consider renting instead of buying

5. Step 3 define criteria
STANDARDS OR RULES BY WHICH SOMETHING CAN BE JUDGED.
FOR AN ITEM YOU WANT TO PURCHASE, THE CRITERIA WOULD BE THE DESIRED, FEATURES, FUNCTIONS, AND QUALITY OF THE ITEM.
LIST THE CRITERIA THAT YOU WOULD CONSIDER ACCEPTABLE BEFORE YOU SHOP FOR THE ITEM

6. STEP 4: SET A TIMELINE
DETERMINE WHEN IS A GOOD TIME TO PURCHASE DESIRED ITEM
FACTOR IN TIME OF YEAR, SALES AND PERSONAL BUDGET

7. STEP 5: SET A SPENDING LIMIT
THE MAXIMUM AMOUNT YOU ARE WILLING TO PAY FOR AN ITEM
BASED ON THE NEEDS/WANTS THAT IS BEING MET, HOW MUCH MONEY ARE YOU WILLING AND ABLE TO SPEND
BY SETTING A SPENDING LIMIT, YOU WILL NOT BE TEMPTED TO SPEND MORE THAN YOU HAVE PLANNED