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Assets
Everything you own that has value
Ex: savings, investments, car, house, jewelry, stocks & bonds
Liabilities
The total of all your debt
Ex: Credit cards, student loans, car loans, mortgage
Net Worth
(Assets - Liabilities)
What you own minus what you owe
Net Income
Money you bring home after taxes are taken out
5 Foundations
Save a $500 emergency fund
Get out of debt + stay out of debt
Pay cash for your car
Pay cash for college
Build Wealth + Give geneously
1st Foundation
1.Save a $500 emergency fund
2nd Foundation
2. Get out of debt + stay out of debt
3rd Foundation
3. Pay cash for your car
4th Foundation
Pay cash for college
5th Foundation
Build Wealth + Give generously
Money Behavior
80% : Habit
20% : Knowledge
Fixed Expense
An expense that remains the same from month to month
Ex: Rent or Subscription
Variable Expense
An expense that changes in amount but happens every month
Ex: Groceries, Gas, Electric bill
Intermittent Expense
An Expense that occurs at various times during the year, often in large sums
Ex: Yearbook or Car insurance
Discretionary Expense
An expense for things you do not need
Wants but NOT needs