Lesson_6 - Executing Your Financial Plan FSoS 1301: Cash or...

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1 Lesson 6 Executing Your Financial Plan Executing Your Financial Plan FSoS 1301: Cash or Credit: You Need to Know Required Readings for Lesson 6: Opdyke, J. (2009, November 3). How to make a spending plan. The Wall Street Journal. Retrieved from: http://online.wsj.com/article/SB122548317028388819.html. Read pages 1 to 4. Montana State University, University Extension program: www.msuextension.org. Read entire article. Optional Reading for Lesson 6: Torres, E. (2009). Make your money work for you: Budgets and banks. Young Money, 9 . Retrieved from http://www.pbs.org/your-life-your-money/pdf/YM_Fall09Issue.pdf Read pages 8-10 Witter, J. (2000). Tips for Turning "Budget Blockers" into "Budget Boosters." Retrieved from Michigan State University, University Extension Website: http://www.fm.fcs.msue.msu.edu/PDF/money200bs2.pdf. Optional Viewing Materials for Lesson 6: Personal Income Statement Worksheet Monthly Spending Plan Worksheet Occasional Expense Worksheet *This lesson has been adapted in part from Dr. Carolyn Bird, North Carolina State University.
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2 Lesson 6 Learning Objectives Understand the concept and importance of a personal income statement. Be familiar with the different types of income. Know the concepts of fixed and variable expenses. Be familiar with the concept and importance of a spending plan. By the end of this lesson, you should: Understand the concept and importance of a personal income statement. Be familiar with the different types of income. Know the concepts of fixed and variable expenses. Be familiar with the concept and importance of a spending plan.
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3 Lesson 6 Executing Your Financial Plan 1. Understanding your financial position 2. Setting your financial goals 3. Establishing your debt limit 4. Creating your personal income statement 5. Developing a spending plan
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4 Lesson 6 Personal Income Statement An itemized list of expected and actual income and expenses during a specified period of time. • Identification of financial discrepancies. • Understanding of one’s financial position. • Informed financial decision making. A personal income statement leads to: Through the previous lessons, you’ve gained a better understanding of your current financial position and your future financial goals. In lesson 5, we covered how to establish your debt limit. Now, it’s time to create and execute your financial plan. Income statements provide a financial roadmap as to how to achieve your financial goals. They are used in all facets of life. Business owners utilize income statements to gain a better understanding of their financial performance. They pay close attention to the level of product sales, the cost of materials, and employee wages. Income is generated through product or service sales. The cost of materials and employee wages are a couple of the “costs” associated with selling the product. The business’ income must exceed the costs
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This note was uploaded on 01/24/2012 for the course ECON 4751H taught by Professor Triece during the Fall '11 term at Minnesota.

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Lesson_6 - Executing Your Financial Plan FSoS 1301: Cash or...

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