Unit 2 - Financial Planning

A statement of actual income and spending for a certain time period, usually a year or month.

• A mortgage

• Break-even

• Cash flow

• Profit and loss

Items of value owned by an individual that are likely to increase in value over time, such as savings, investments, and real estate.

• Regular Assets

• Liabilities

• Wealth Building Assets

• Net worth

The debts of a person or company; loans or expenses that must be paid.

• Liabilities

• Assets

• Income Statement

• Statement of Cash Flows

A list of all of a person's assets and liabilities at a specific point in time. This Statement can determine current net worth and should be updated at least once a year.

• Cash Flow Statement

• Income Statement

• Balance Sheet

Anything an individual owns that has commercial or exchange value. This can include houses, cars, computers, collectibles, stocks, bonds, cash in the bank, and so on.

• liability

• asset

• net worth

• expenses