FIRE 301 Lecture Notes - Lecture 2: Mint.Com, Market Liquidity, Current Liability

• School: VCU
• Department: Finance, Insurance and Real Estate
• Course: FIRE 301
• Professor: Steve Williamson

Document Summary

Lecture 2: chapter 2: measuring your financial health and making a plan. **money manager: where does all of your money go, planning & budgeting requires control, evaluating your financial health, develop a plan of action. Using a balance sheet to measure your wealth: a snapshot of your financial status at a particular time, assets you own, debt or liabilities you owe, your net worth or equity. Liabilities: what you owe: debt that must be repaid in the future, current liabilities must be paid in one year, long-term liabilities are due beyond a year, list only unpaid balances. Net worth: a measure of your wealth (depend on goals: net worth= total assets total debt. If liabilities > assets (negative nw & insolvent) Using an income statement to trace your money: financial motion picture tells you where your money has come from and where it has gone over some period of time.