Effective Personal Finance Management

A decrease in the value of an asset

• Depreciation

• Liabilities

• Appreciation

• Scarcity

The total amount of an employee's earnings before deductions are taken out.

• Net pay

• Cash flow

• Net worth

• Gross pay

A financial expression that shows the relationship between a person's debt and net worth. It is calculated by dividing total liabilities by total assets.

• Collateral

• Depreciation

• Debt Ratio

• Net worth

Spending for goods and services beyond the essentials like food, shelter, and clothing

• discretionary spending

• disposable income

• unanticipated expense

• anticipated expense

An item of value pledged as a guarantee for payment of a loan which can be repossessed by the lender if the loan is not paid back.

• Collateral

• Net worth

• asset

• collectible

The measure of money coming in and money going out over a certain period of time

• Gross pay

• net worth

• liquidity

• cash flow

Money spent on different items.

• solvent

• appreciation

• expenses

• insolvent

The standards used to determine what is important to a person.

• Do unto others

• goals

• assets

• values

The idea that you should put money into a savings account as soon as you receive any income and before you pay any expenses or spend any money.

• Personal financial planning

• Saving for a rainy day

• Pay yourself first

• Plan ahead

A list of all of one's personal property

• Personal property inventory

• Bank statement

• Budget

• Income and expense inventory