AEM1200_1117ToPost - AEM1200 Introduction to Business...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: AEM1200, Introduction to Business Management. AEM1200, Monday 11/17 Personal Finance Monday Personal Who wants to be a millionaire? Getting a hold of yourself The equity building cycle Who becomes wealthy? Usually the wealthy individual is a businessman who has lived in the same town for all of his adult life. This person owns a small factory, a chain of stores, or a service company. He has married once and remains married. He lives next door to people with a fraction of his wealth. He is a compulsive saver and investor. And he has made his money on his own. made From “The Millionaire Next Door”, by Thomas J. From Stanley and William D. Danko. Stanley Affluent people Affluent Live well below their means Allocate their time, energy and money efficiently, Allocate in ways conducive to building wealth in Believe that financial independence is more Believe important than the display of high social status important Were not afforded economic outpatient care by Were economic their parents their Have economically self-sufficient adult children Are proficient in targeting market opportunities Have chosen the “right” occupations From ‘‘Money worlds’’ and well-being: An integration of money dispositions, materialism and price-related behavior, M. Tatzel / Journal of Economic Psychology 23 (2002) 103–126 Controlling Assets Controlling 1. Take Inventory 1. Track Expenses 1. Prepare Budget 1. Payoff Debts 1. Start Saving 1. Borrow Only To Borrow Increase Value Increase Where Should You Invest? Where Your own business Yourself Education Housing Insurance Stocks Real Estate Retirement Investments Stages of Capital Formation Stages Paying off debts Home equity Retirement funds Indirect business investment Direct business investment Building a Capital Account Building Create/Apply Strategy Real Estate- Safe Taxes & Home Taxes Ownership Ownership Savings Manage Credit Life Insurance Health Insurance Homeowner’s or Homeowner’s Renter’s Insurance Renter’s Retirement??? Retirement??? Social Security Individual Individual Retirement Account (IRA) Account Simple IRA 401(K) Plan Keogh Plan Financial Planners The Foundation Stones of Financial Success are Success Integrity – being honest with all people Discipline – applying self control Social skills – getting along with people A supportive spouse Hard work – more than most people Take-aways Take-aways Amassing wealth requires considerable skill and Amassing discipline; discipline; Some “golden” rules Always pay your debts first and foremost Use credit sparingly, if at all Use your job as your R&R Cultivate courage You are your own boss and entrepreneur. ...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online