notes | Personal Finance

GOAL

1.short  intermiddle  long

2.SMART(specific,measurable,attainable,realistic,time)

3.judge a goal

buy a car

-save $2,500 to use as down payment on a new Chevrolet Malibu three years from today

lose 10 pounds

save a million dollars

-save 1,000,000 in next 45 years for retirement

save 100 dollars in first

4.financial goals

saving

-save $4000   in emergency savings in 12 months

housing

-in 10 years, save $15,000 to use as a down payment on a three bedroom $150,000 house in Southwest Missouri

insurance

-save $1,000 in 12 months to raise my deductible

retirement

-at age 60, I want a monthly income of 5,000

Budgeting

1.budget

-spending plan

-for specific areas  changed

-cash flow statement

-excess or unusual amounts

2.types of budgets

written category

envelope

mental

3.develop the budget

-keep track for a month

-be realistic

-out of line

-goals being met

-list of income

-compare income to expenses

4.fixed or variable

-state  rent,cell phone,insurance

spread money out half year into month

-change gas,food,entertainment

-cut off expenses or improve income

Credit

1.what is credit

2.get your credit report

-all available credit

-payment history

-employment information

-home information

3.how considered  credit score

payment history

debt

length of credit history

types of  credit

inquiries

4.type of credit

credit card

-bank card merchant card

unsecured loan

secure loan

mortgage

Insurance

1.risk management

identify major areas and different types for insurance coverage

2.risk-hazard-peril(insurance)-liability

3.areas of insurance

property

-house  

-automobile 25/50/10

-medical payments

-collision coverage

-comprehensive

health

-preferred provider organization

-health maintenance organization

-goverment programs

-deductible or co-pay

-vsrious coverages

life

-permanent insurance

-temporary insurance

-variations universal,variable,group

Investing Basics

1. common types

money market securities

stock     diversification

bonds  

mutual funds

2.return on investment

return=(Pt-Pt-1)+D/Pt-1

3.risk

4.common mistakes

unrealistic goal

lose sight of the goal

borrowing to invest

taking additional risk to cover perious losses

accepeting advice from expert

Time capital

1.rule of 72

n=72/r   资产翻番

r is number of percent interest rate

n is numbei of periods