COMMERCE 4FP3- Midterm Exam Guide - Comprehensive Notes for the exam ( 50 pages long!)
Document Summary
Income: monies coming in, usually from a salary, interest and dividends. To increase the wealth, you maximize the cash flows by maximizing the income and/or minimizing expenses. Compare the actual income and expenses with the budgeted amounts. Find the forecasting errors can allow you to adjust your spending to stay within the budgeted expenses. Choose not to adjust your spending but to make your budget more realistic. Assume it is likely to incur some unexpected expenses over the course of several months, e. g. prescription drugs, car repairs. Make the budget inaccurate for a specific, but reasonably accurate over several months. To change the budget to increase the savings. Change to provide more cash for savings. Not creating a budget deal with cash deficiencies. Rely on family members or friends when they run shorts of funds. May ultimately destroy relationships in the long run. Summarizes your assets, liabilities, and net worth.
