Earned Income
wages, salary, tips, bonuses
Standard of living
is the material basis of well-being, which is reflected in a person's consumption level
Salary
paid a fixed amount per pay period
Bonuses
goal-driven
Fair market value
the amount it is worth TODAY if you sold it.
Income and Expense Statement
shows a breakdown of your income and expenses over a period of time. It is also used to calculate net income.
Gross income
income without deductions
Expenses
cost required or the money spent on somethin
Budget
balancing your expenses with your income
Financial statements
looks at today (a Net Worth Statement) and one that looks at the past (Income and Expense Statement)
Well-being
state of being comfortable, healthy, or happy
Standard of living
degree of wealth and material comfort available to a person.
Commissions
oriented to production or sales
Net worth
assets (own) - liabilities (owe)
Assets
item or something of value that you own
Liabilities
debt or money owed that you are obligated to pay (car loan, mortgage)
Solvent
you are able to pay all debts
Insolvent
NOT able to pay all debts
Unearned income
interests, dividends, child support, unemployment
Utility
the satisfaction received from consuming goods and services
Short-term goals
0-2 years
Mid-term goals
2 to 8-15 years
Long-term goals8-15 +
8-15 +
SMART goals
specific, measurable, achievable, relevant, time-bound
Liquid
easy to sell or convert into money