Managing Personal Finances

Managing Personal Finances - Managing Personal Finances...

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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).
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Managing Personal Finances - Managing Personal Finances...

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