Managing Personal Finances

Managing Personal Finances - Managing Personal...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Managing Personal Finances -Describe the 9 steps of learning to control your assets that is how to get your money to begin working for you. Step 1: Set SMART Goals---- Specific Measurable, Attainable, Realistic, and Timeline -Have specific, measurable goals, and not just dreams. (i.e. be financially independent.) -Make your goals reasonable, and achievable. -Have a timeline: short, medium, long-term goals. Step 2: TAKE INVENTORY: how to figure out your net worth -List everything you own -Note present market value=your total assets -Your total assets -List all creditors=total liabilities -subtract liabilities from assets = your net worth Step 3: Practice Financial Discipline - Be brutally honest with yourself: record everything for one month—got to know where it’s going. -Create a reasonable budget, pay yourself first!! Step 4: Pay yourself first: Maximize Your 401K -Individual Retirement Accounts: an IRA is a way for anyone to build a nest egg for retirement. The sooner you start, the better! Can put as much as $5k/year (single).
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/03/2011 for the course BUSINESS 111 taught by Professor Schloemer during the Spring '11 term at Miami University.

Page1 / 2

Managing Personal Finances - Managing Personal...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online