01:220:110 Lecture Notes - Lecture 2: Disposable And Discretionary Income, Cash Flow, Cash Flow Statement
Document Summary
Week 2: chapter 2 (planning with personal financial statements); and chapter 3 (applying time value concepts, factors that affect cash flow, creating budget, future and present value of a single dollar amount, future and present value of annuity, savings plan, cash inflow/cash outflow, balance statements. Personal financial management: for most people, all financial planning is in their heads, we can plan our road trip in our heads, but life is a little more complicated, many will tell you that they have a budget and they know what they spend each month, they may also tell you they know what me inc. is worth overall, seeing the numbers on paper often presents a much different picture, similar to the concept we discussed last week on goal setting, seeing your goals on paper and thinking through a plan to get there, sometimes is an eye opening experience, this is particularly true of out of pocket, day to day spending.
