KW Personal Finance
financial plan
A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities.
Bankruptcy
A legal process to get out of debt when you can no longer make all your required payments
Lifestyle forces
Factors that influence how a person chooses to live such as marriage and career choice. Some factors may be outside an individuals control such as age and economic conditions.
Retirement savings
Money employees set aside or invest for future income, starting now
budget
PYF, an estimate of income and expenses, saving/investing for a set period of time. (monthly)
SMART goals
Specific, Measurable, Attainable, Realistic, Timely
financial health
a description of the state of your overall financial situation
Goal setting
are significantly impacted by your stage in the financial life cycle and other external lifestyle forces
Liabilities
debts that you owe
Financial Goals
handling your money as you move forward for how you will begin achieving your personal goals
Culture
heritage, way of life, way of thinking of a specific group of people.
A budget sheet
is easily customized so that it makes the most sense for each individual.
Control over your money
know how to use a net worth statement and a budget sheet properly.
Assets
money and other valuables belonging to an individual or business
net worth
total assets minus total liabilities