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Unformatted text preview: 5/10/2010 1 Chapter 2: Part 1 1 Measuring Your Financial Health and Making a Plan My Financial Planning Philosophy 2 Personal Financial Planning Process (review) | Step 1: Evaluate Your Financial Health | Step 2: Define Your Financial Goals 3 | Step 3: Develop a Plan of Action | Step 4: Implement your plan | Step 5: Review Your progress, Reevaluate, and Revise your plan Step 1: Evaluate your Financial Health | You can’t get to where you want to be financially until you know exactly where you are. 4 z Balance sheets z Income statements z Budget Using A Balance Sheet to Measure Your Wealth | Personal balance sheet: A statement of your financial position on a given date. “the financial Polaroid 5 or snap shot” of THE PRESENT | Lists 1) your assets and 2) your liabilities 1) Your Assets: What You Own | Monetary | Investment | Retirement plans 6 | Real estate | Automobiles and other vehicles | Personal property 5/10/2010 2 Monetary Assets: | Cash or other assets that can be easily liquidated 7 | Examples -- cash, checking accounts, savings accounts Investment Assets: | Assets that are invested for the future | Examples stocks 8 | Examples -- stocks, bonds, mutual funds, cash value life insurance Retirement Plans: | Investments by you or your employer to save for retirement | Examples 9 | Examples --...
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- Spring '09
- Balance Sheet, fair market