Your Financial Health By Victoria Yurlova

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All of your financial decisions and activities have an effect on

All of your financial decisions and activities have an effect on

your financial health now and in the future.

“don’t buy a house that costs more than 2.5 years’ worth of income”

“you should always save at least 10% of your income towards retirement”

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Do the Math – Net Worth and Personal Budgets Money comes

Do the Math – Net Worth and Personal Budgets

Money comes in,

money goes out.
As a starting point, it is important to
calculate your net worth – the difference
between what you own and what you owe.
To calculate your net worth, start by
making a list of your assets (what you
own) and your liabilities (what you owe).
Tracking your net worth over time allows you to evaluate your progress, highlight your successes and identify areas requiring improvement.

ASSETS

LIABILITIES

NET WORTH

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A personal budget is an important financial tool, because it can help you:

A personal budget is an important financial tool, because it can

help you:
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The income and expense categories you include in your budget will

The income and expense categories you include in your budget will

depend on your situation and can change over time.

Common income categories include:
Bonuses
Child support
Interest and dividends
Rents and royalties
Retirement income
Salaries
Social security
Tips

General expense categories include:
Debt payments – car loan, student loan, credit card
Education – tuition, daycare, books
Entertainment and recreation – sports, hobbies, movies, DVDs, concerts
Food – groceries, dining out
Giving – birthdays, holidays, charitable contributions
Housing – mortgage or rent, maintenance
Insurance – health, home, auto, life
Medical/Healthcare – doctors, dentist, prescription medications
Personal – clothing, hair care, gym, professional dues
Savings – retirement, education, specific goals (i.e. holiday)
Special occasions – weddings, anniversaries
Transportation – gas, taxis, subway, parking
Utilities – phone, electric, water, gas, Internet

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Once you’ve made the appropriate projections, subtract your expenses from your

Once you’ve made the appropriate projections, subtract your expenses from

your income.
If you have money left over, you have a surplus and you can decide how to spend, save or invest the money.
If your expenses exceed your income, however, you will have to adjust your budget by increasing your income or by reducing your expenses.
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Recognize Needs Vs. Wants “Needs” are things you have to have

Recognize Needs Vs. Wants

“Needs” are things you have to have in

order to survive: food, shelter, clothing, healthcare and transportation.

“wants” are things you would like to have, but that you don’t need for survival