RCSC 150B2 Chapter Notes - Chapter 3: Cash Flow Statement, Cash Flow, Life Insurance

• School: University of Arizona
• Department: Retailing & Consumer Science
• Course: RCSC 150B2
• Professor: Ligon

Document Summary

3. 1 analyzing your spending habits: every penny counts. For a money journal to be effective, have to be disciplines and keep track of all spending for at least a month. Includes candy, expense (rent, etc. ) and anything else you buy. By making minor changes to you spending, can keep lifestyle without major adjustments. Step 2: understand the elements of personal financial statements. Personal financial statement : an accounting of what you have to show for your spending; what you own/owe. Asset : item of value that you own. Liquidity : how quickly an asset can be turned into cash without substantial loss in value. Cash value (of life insurance) : amount you would receive if you were to cancel your. Fash value (of life insurance) : amt the beneficiary would receive if you were to die. Net worth : difference between assets and liabilities. Step 3: create a personal cash flow statement.