FACS 350 (Liberty University)

milks, fill in the blank

be able to recognize 10 characteristics

Characteristics of a faithful money manager

evil

“The love of money is the root of all ------”

regret, envy, fear

Financial contentment

1. Looking back without ———

2. Looking at the present without ——-

3. Looking to the future without ———

assets, want, buy

Financial Independence

The confidence that you have enough ——- or income to work when you ——-, vacation where you want, and ——- what you want

dominate, heart, biblical

Financial Freedom

When money and financial decisions do not ——- your thoughts- when your ——- and attitude about money are consistent with ——- principles

controlled, fear

Financial Peace

Refusing to be ——- or tormented by ——-, and trusting God even when you don’t have enough money

as soon as possible

When do you think couples should start taking about finances?

executing, rewards

process thinking

a focus on fully ——— each step of a process, not on the potential outcomes or ———

Specific, Measurable, Attainable, Relevant, Time bound

SMART goals

decision, RAND, 1950’s

Criteria based decision model

A widely used ———-making process in the US corporate world, developed by the US government and the ——- Corporation in the late ——-

records, activities

Financial Statement

Written ——— of financial ———

expense, budgeted

Variance

The amount that an actual ——- deviates from the forecast or ——— amount

spending, income, period

Budget

A ——— plan based in an estimate of ——— and expenditure for a set ——- of time

giving up, choice

Opportunity cost

The cost of ——- ——-other alternatives to make a ———

money, earning

Investing

The use of ——— for the purpose of ——- money

summarize, goals, cash flow, control

Steps of financial planning process

Step one- ———- the present situation

Step two – establish financial ——-

Step 3 – plan to increase your net —— ——-

Step 4 – ——— your cash flow

fear, greed

----- and ----- control financial process

patience and your attitude

Two things that help define how you handle your money

selecting, resources

Financial planning

Process of ——- and allocating your limited ——- for their most effective use

How much is enough?

Most challenging question

possessions, comfort, important

Materialism

valuation of material ———— and physical ——- as more ——- than spiritual pursuits or people

Vilfredo Pareto observed 80% of land was owned by 20% of people

Pareto Principle

less, give, debt, liquidity, long

Principles of Financial Planning       

. Spend ——- than you earn

·        ——- generously

·        Avoid use of ——-

·        Maintain ——-

·        Set ——- -term goals

earned

“never spend your money before you have ----- it” – Thomas Jefferson

debt, avoid, cash, educate, budget, taxes

Saving tips

. 1 – repay ——

·        ——- debt

·        Pay ——-, not card

·        ——- yourself

·        Learn to ———

·        Get a grip on ——-

taxes, repayment

Net Spendable Income

Amount of left over  after ——-, giving and debt ———-

movement, personal, income, out

Cash Flow

·        ———— of your money through your own ——— financial system

·        How your ———- flows into your bank accounts and flows —— to expenses and investments

money, minus, out, more, negative, earn

Net Cash Flow

o   ———- coming in ——- money going ——-

o   If you spend ——- than is coming in, your cash flow is ——-

o   Spend less than you ——-

present, goals, increase, control

Budgeting Process]

1. Summarize your ——— situation

2. Establish your financial ——-

3. Plan to ——- your net cash flow

4. —- your cash flow

assets, liabilties

Financial Statement

A snapshot of your current financial situation comparing your ——- (what you own) to your ——- (what you owe)

own, owe

Financial Net Worth

Difference between what you ——- and what you ——