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This 0 page Class Notes was uploaded by Natalie Notetaker on Sunday January 24, 2016. The Class Notes belongs to FIN 110 at Ball State University taught by Ronald X. Groeber in Spring 2016. Since its upload, it has received 101 views. For similar materials see Personal Finance in Business at Ball State University.
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Date Created: 01/24/16
Finance Notes Wednesday January 13 2016 Organization 0 Good financial files are important for quick responses 0 Keeping records helps provide you with information when you need it 0 While applying for a loan a prepared financial statement detailing your net worth is very important Maintain good relationships with significant others 0 Be honest with others who can help or hurt your financial goals 0 Communicate regularly 0 Provide support 0 Listen 0 Be open to suggestion from others Stay informed and act on it 0 Be aware of changes that could affect your financial health 0 Revise goals and plans 0 Stay on top of developments which can inspire confidence in others Maturity does not stop at 21 0 People are always maturing which means they must continually work on improving attitudes and responses 0 Instead of complaining about a situation you can find positive ways to improve that situation 0 Be open to change Friday January 15 2016 Comprehensive financial plan 0 Try to meet all financial goals 0 Long term or short term 0 60 million Americans fail 0 reasons I Not enough money going into retirement I House payment costs too much Financial planning process 1 Determine your current financial readiness 2 Develop short medium and long term goals 3 Identify your best course of action 4 Consider your life situations and values along with your present and future economic factors Assess risk and time value of money 6 Make a plan commit and action it U 7 Review and revise no goal should be permanent be prepared to change some goals Financial readiness What you should know 1 How much do you spend 2 How much do you earn now and in the future 3 Your net worth 4 Your wants vs needs What you will do 1 Continually gather information 2 Focus on performance and advancement 3 Save and invest 4 Live now but keep an eye on the future Wednesday January 20 2016 Financial goals 0 Be specific how much money do you want be ambitious you will revise as needed 0 Make long term goals but be prepared to change them with time 0 Prioritize your goals should be ranked with need above wants 0 If you can live without something it is not considered a need You may have to sacrifice your wants for needs be prepared 0 Your needs are the most important Input from significant others is important 0 Talk with that person to make sure you are on the same page Seek advise from others 0 Whatever the goal is the more information the better 0 Review and revise continually Herd Behavior Others fail because they want to be the best right away They are timid be more demanding Stand out in your career make others jealous of your success Don t be captured be the herd Friday January 22 2016 Opportunity cost amp time value of many 0 Time is a scarce resource You cannot get more time but you can learn how to manage it better 0 Opportunity cost low grades result from too much video games Financial opportunity cost 0 Keeping all of your money in savings could be a loss because it could have been invested 0 Monthly deposits in a retirement account avoids living in poverty later in life 0 Be sure to set aside money for retirement 0 Buying wants may not be a good decision late in your life Time value of money 0 PPrinciple amount of money your saved 0 iRinterest rate 0 Ttime 0 iinterest 0 PXiRXTi EX 500 X 06 X 612 15 0 The 500 in saving has a value of 15 if the interest rate is 6 Rule of 72 0 Another way of time value of money 0 Can compare the interest earned on a safe treasury bill to that earned on a riskier corporate bond Recommend activities by age 0 1822 develop budget habits save money use banks and credit prudently 0 2330 pay off college debt increase savings and invest establish goals and implement financial plan 0 3050 review assess and revise goals evaluate insurance needs in light of family 0 50retirement review assess and revise goals consider where to retire review will and estate plans
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