个人理财英文版第二章.ppt

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1、Chapter 2Chapter 2Money Management Money Management SkillsSkillsCopyright 2010 by The McGraw-Hill Companies,Inc.All rights reserved.McGraw-Hill/IrwinMoney Management SkillsMoney Management SkillsChapter ObjectivesChapter Objectives1.Identify the main components of wise money management2.Create a per

2、sonal balance sheet and cash flow statement3.Develop and implement a personal budget4.Connect money management activities with saving for personal financial goals2-2Objective 1Objective 1Identify the Main Components ofIdentify the Main Components of Wise Money Wise Money ManagementManagementMoney ma

3、nagement=day-to-day financial activities necessary to manage current personal economic resources,while working toward long-term financial securityDaily spending and saving decisions=central to financial planningMust be coordinated with needs,goals,and personal situations2-3Components of Money Manage

4、mentComponents of Money Management2-4Money Management Troubles&DebtMoney Management Troubles&DebtGetting out of debt:Evaluate your credit situationTrack your spendingPlan to make payments on timeConsider other income sourcesIf appropriate,seek assistance2-5An Organized Personal Financial An Organize

5、d Personal Financial Records SystemRecords SystemProvides a basis for:Handling daily business affairs,such as bill payingPlanning and measuring financial progressCompleting required tax reportsMaking effective investment decisionsDetermining available resources for current and future buying2-6Record

6、s in Your Records in Your Home FileHome FileItems you refer to oftenPersonal and employment recordsMoney management recordsTax recordsFinancial services recordsCredit recordsConsumer purchase and auto recordsHousing recordsInsurance recordsInvestment recordsEstate planning and retirement records2-7W

7、hat to Keep in a What to Keep in a Safe Deposit BoxSafe Deposit BoxRecords and items that would be hard to replace:Birth,marriage and death certificatesList of checking,savings and financial institution account numbers Citizenship and military papersAdoption and custody papersSerial numbers and phot

8、os of valuablesCDs and credit and banking account numbersMortgage papers and titlesList of insurance policy numbersStock and bond certificatesCoins and other collectiblesCopy of will2-8Records on Your Records on Your Personal Personal Computer*Computer*Current and past budgetsSummary of checks writt

9、en and other banking transactionsPast income tax returns prepared with tax preparation softwareAccount summaries and investment performance resultsComputerized versions of wills,estate plans,and other documents*Keep a backup!2-9How Long to Keep RecordsHow Long to Keep RecordsRecordsRetention PeriodB

10、irth certificates,wills and social security informationIndefinitelyPersonal property and investmentsAs long as you own themDocuments re:purchase and sale of real estateIndefinitelyCopies of tax returns and supporting data7 years minimum10 years better2-10Objective 2Objective 2Create a Personal Balan

11、ce Sheet Create a Personal Balance Sheet and Cash Flow Statementand Cash Flow StatementBenefits 1.Recap your current financial position in relation to the value of items you own and amounts you owe2.Measure progress toward financial goals3.Maintain information on financial activities4.Provide inform

12、ation for preparing tax forms or applying for credit2-11Balance SheetBalance SheetA financial statement that reports what an individual or family owns and owes as of a specific date:Also called:Net worth statement Statement of financial positionItems of Value(what you own)-Amounts owed(what you owe)

13、Net Worth(your wealth)=2-12Components of a Balance SheetComponents of a Balance SheetStep 1 List items of valueLiquid assetsReal estatePersonal possessionsInvestment assetsStep 2 Determine amounts owedCurrent liabilities(Inflows Draw from savings or borrowProblem/Result:Lower assets or higher liabil

14、itiesInflows OutflowsPut money into savings or pay off debtsResult:Higher net worth2-28Selecting a Saving TechniqueSelecting a Saving Technique1.Write a check each payday and deposit in a savings account2.Use payroll deduction to deposit a certain amount in savings(direct deposit)3.Save coins or spe

15、nd less on certain items2-29Calculating Savings AmountsCalculating Savings Amounts1.Convert savings goals into specific amounts2.Use savings and investments plans to grow your money3.Use time value of money to calculate progress toward financial goals2-30Using Savings to Achieve Using Savings to Achieve Financial GoalsFinancial Goals2-31