Ch 3 Personal Finance Review

difference between the amount that you own and the debts that you owe

A home fire safe-box is a good way to protect animportant document from theft.

An example of this would be taxes

Real estate is an example of a liquid asset.

Extra money that can be spent or saved

The price at which property could be sold

Insolvency happens when the total of your liabilities is greater than your assets.

the debts that you owe

Take home pay is equal to your salary.

The total of your fixed and variable expenses is your cash flow

A measure of the changes in prices for commercially purchased goods is consumer price index

You should include bonuses you might get at workwhen you estimate your income.

A deficit is when more money is spent than is earned or received.

A small, secure storage compartment you can usually rent at a bank for $100 a year

A telephone bill is a liability

cash and items that can quickly be converted to cash

This shows important feedback on your income and spending patterns

An example would be an electric bill. 

The method of planning how to get the most from your money

The money left over after essentials are paid for.

This is the first step in planning a budget

The title to your car is an example of a personal financial document