personal finance vocab

net worth

Difference between the amount you own & debts you owe

real estate

land and any structures that are on it

discretionary income

money left over after paying for essentials

small deposit box

small secure storage compartment that you can rent in a bank

take-home pay

the amount of income left after taxes and other deductions are taken out of your gross pay

Market Value

the amount recorded on the real estate portion of your balance sheet

cash flow

the money that actually goes into and out of your wallet and bank accounts

money management

Planning how to get the most from your money

personal financial statement

a document that provides information about an individual's current financial position and presents a summary of income and spending

insolvency

a financial state that occurs if liabilities are greater than assets

personal balance sheet

a financial statement that lists items of value owned, debts owed, and a person's net worth

Assets

any items of value that an individual or company owns, including cash, property, personal possessions, and investments

liquid assets

cash and items that can be quickly converted to cash