The official blog for the Friday Addition Foundations in Personal Finance class
Sunday, January 19, 2014
January 17 - Online Discussion Question 3
Name one of the forms used in the budgeting process. What does this form do? How do you fill it out? Why is it important? (make sure to answer all parts of the question)
1) The consumer Equity Sheet. 2) This form tells you how much equity you are worth 3) In the item column, you put your items. In the value column, put the value of those items. In the debt column, put how much debt you still owe on those items. In the equity column, put the equity of your items (value - debt = equity) 4) this is important because you can keep track of how much your worth. As the equity grows, you grow closer and closer to being a millionaire.
The Lump Sum Payment Planning sheet. This form allows you to plan for non-monthly payments. To fill it out, you must write out the annual amount, divide it by twelve to get the monthly amount. This form is important because it allows you to save money every month for the bi-monthly, quarterly, semi-annual, or annual payments that are due.
income sources sheet: this shows you the amount and the time at which you receive your paycheck or other income source. you simply put your total earnings for a month in the left hand side and put when you receive it on the right hand side. it is important because it helps you figure out when you get paid so you can figure out when the best time to pay for things is
1) Irregular Income Planning 2) This form is for people that don't have a regular monthly income. Ex: self-employed 3) You have 3 columns (left) ITEM, (middle) AMOUNT, and (right) CUMULATIVE AMOUNT. You take the cumulative amount and add it to the amount and so on and so forth until the money runs out. 4) This is especially important because it gives you an idea of how much you'll be able to spend on certain things even though you don't know what you will make exactly.
Cash Flow Plan This plan involves writing where you money should go and how it should affect the matter. This involves writing your checkbook, and keeping it balanced, by checking if your bank receipt is the same as your list of receipts, and if it's not, seeing what you missed, and making sure you pay for it. Your number should result in zero, otherwise you may need to be more careful.
the Consumer Equity Sheet This is were you write down all the values of the items that you own minis all the debts that you still own. This is important because it gives you you net worth which is were you find out if you are a millionaire. you fill this out by writing down all the major things you own and totaling there value then minus the total debt you have on everything. the best way to do this is to use the sheet that Dave gives out. Adam
The irregular payment planning, it helps you budget when you don't have an exact regular income every month. You prioritize by what you are fairly certain you will earn and then anything after that is put in order of what you would like to do first.
The "Major Components of a Healthy Financial Plan" form is a great way to start budgeting and managing your money. There the actions listed that you need to complete for your financial plan like establishing your Written Cash Flow Plan and setting up Emergency Funds and Retirement Funds. You fill out the different sections for the action that needs to be completed and the date when you plan to complete them. This form is important because it allows you to prioritize what you need to accomplish in order to establish a stable financial plan.
Consumer Equity Sheet This form helps you find your equity. (and also how much debt you have) You make a list of all your checking accounts, real estate, vehicles, retirement plans, etc, etc, etc and come up with the values of each item, add that up. Then you list how much debt, if any, on each item, add that amount up. Then subtract the two amounts and you will come up with your equity. This is important because you can find out personal finance problems and see how you should solve them.
The consumer equity sheet. it helps you figure out how much your are worth (your money/possessions minus your debt). All you do is fill out everything you own that is worth anything and the debt that you owe. Then subtract the debt from the worth and add everything up to get your answer. It helps you see what you own, what you owe, and what you are worth (and encourages you to pay off all debts so that you'll be worth more).
I will tackle the "Allocated Spending Plan" form 1) This form is basically a detailed cash-flow plan. It allows you to specifically spend every dollar (on paper) for each paycheck that you receive every month. 2) You fill it out by, first, filling in your paycheck amount for the week that you receive it at the top of the page. There are four columns for each week of the month. Next, go down THAT column and fill in the spaces. Next to each expense there will be two spaces separated by a slash. Put the amount you plan on paying for that expense to the left of the dash. Write your remaining funds to the right. As you work your way down and across, your money should shrink until it hits zero at the bottom of the list. 3)This is important because it places a HUGE importance on knowing where your money is going each WEEK. It gives every dollar and every penny a job, reducing your potential to overspend, provided that you follow it.
1 - The consumer equity sheet. 2 - It helps you figure out how much your money and possessions are worth. 3 - You need to fill out everything you own that is worth anything and the debt that you owe. Then subtract the debt from the worth and add everything up to get your total. It helps you see what you own an what you owe.
1) The consumer Equity Sheet.
ReplyDelete2) This form tells you how much equity you are worth
3) In the item column, you put your items. In the value column, put the value of those items. In the debt column, put how much debt you still owe on those items. In the equity column, put the equity of your items (value - debt = equity)
4) this is important because you can keep track of how much your worth. As the equity grows, you grow closer and closer to being a millionaire.
The Lump Sum Payment Planning sheet. This form allows you to plan for non-monthly payments. To fill it out, you must write out the annual amount, divide it by twelve to get the monthly amount. This form is important because it allows you to save money every month for the bi-monthly, quarterly, semi-annual, or annual payments that are due.
ReplyDeleteAutumn
income sources sheet: this shows you the amount and the time at which you receive your paycheck or other income source. you simply put your total earnings for a month in the left hand side and put when you receive it on the right hand side. it is important because it helps you figure out when you get paid so you can figure out when the best time to pay for things is
ReplyDeletetravis
1) Irregular Income Planning
ReplyDelete2) This form is for people that don't have a regular monthly income. Ex: self-employed
3) You have 3 columns (left) ITEM, (middle) AMOUNT, and (right) CUMULATIVE AMOUNT. You take the cumulative amount and add it to the amount and so on and so forth until the money runs out.
4) This is especially important because it gives you an idea of how much you'll be able to spend on certain things even though you don't know what you will make exactly.
Cash Flow Plan
ReplyDeleteThis plan involves writing where you money should go and how it should affect the matter. This involves writing your checkbook, and keeping it balanced, by checking if your bank receipt is the same as your list of receipts, and if it's not, seeing what you missed, and making sure you pay for it. Your number should result in zero, otherwise you may need to be more careful.
the Consumer Equity Sheet
ReplyDeleteThis is were you write down all the values of the items that you own minis all the debts that you still own. This is important because it gives you you net worth which is were you find out if you are a millionaire.
you fill this out by writing down all the major things you own and totaling there value then minus the total debt you have on everything. the best way to do this is to use the sheet that Dave gives out.
Adam
The irregular payment planning, it helps you budget when you don't have an exact regular income every month. You prioritize by what you are fairly certain you will earn and then anything after that is put in order of what you would like to do first.
ReplyDeleteThe "Major Components of a Healthy Financial Plan" form is a great way to start budgeting and managing your money. There the actions listed that you need to complete for your financial plan like establishing your Written Cash Flow Plan and setting up Emergency Funds and Retirement Funds. You fill out the different sections for the action that needs to be completed and the date when you plan to complete them. This form is important because it allows you to prioritize what you need to accomplish in order to establish a stable financial plan.
ReplyDeleteConsumer Equity Sheet
ReplyDeleteThis form helps you find your equity. (and also how much debt you have)
You make a list of all your checking accounts, real estate, vehicles, retirement plans, etc, etc, etc and come up with the values of each item, add that up. Then you list how much debt, if any, on each item, add that amount up. Then subtract the two amounts and you will come up with your equity.
This is important because you can find out personal finance problems and see how you should solve them.
The consumer equity sheet. it helps you figure out how much your are worth (your money/possessions minus your debt). All you do is fill out everything you own that is worth anything and the debt that you owe. Then subtract the debt from the worth and add everything up to get your answer. It helps you see what you own, what you owe, and what you are worth (and encourages you to pay off all debts so that you'll be worth more).
ReplyDeleteeyezik
I will tackle the "Allocated Spending Plan" form
ReplyDelete1) This form is basically a detailed cash-flow plan. It allows you to specifically spend every dollar (on paper) for each paycheck that you receive every month.
2) You fill it out by, first, filling in your paycheck amount for the week that you receive it at the top of the page. There are four columns for each week of the month. Next, go down THAT column and fill in the spaces. Next to each expense there will be two spaces separated by a slash. Put the amount you plan on paying for that expense to the left of the dash. Write your remaining funds to the right. As you work your way down and across, your money should shrink until it hits zero at the bottom of the list.
3)This is important because it places a HUGE importance on knowing where your money is going each WEEK. It gives every dollar and every penny a job, reducing your potential to overspend, provided that you follow it.
1 - The consumer equity sheet.
ReplyDelete2 - It helps you figure out how much your money and possessions are worth.
3 - You need to fill out everything you own that is worth anything and the debt that you owe. Then subtract the debt from the worth and add everything up to get your total. It helps you see what you own an what you owe.