Duplicate of The Financial Plan (Chapter 2)

Net worth is determined by subtracting your liabilities from your __________.

This involves specifying financial goals & describing them in detail.

What is a personal financial plan like?

In general the higher the risk of an investment the higher the potential ___________.

The first step in creating a budget is______________.

Which of the following is a key component of risk management?

The purpose of a budget is to plan so that you can meet your_____________.

When should you start to save for retirement?

The process of forecasting future expenses is called_____________.

People without enough ___ often use ____ to cover immediate shortfalls, but this can be costly.

Wages earned and allowance are 2 types of ___________.

Without insurance on a major purchase, the owner assumes all the __________.

You can increase net worth by increasing your _______ & decreasing your ________.

When you use ______, you are borrowing money.

A good way to think about _______ is paying rent on borrowed money.

If you don't have enough money to cover your immediate needs, then you need more _______.

This is anything we owe, or our debts.

Which is NOT a step in creating a budget?

Which of the following refers to the amount of an asset that a person owns?

If you still owe $2,000 on a vehicle this is considered a _______________

For most U.S. consumers, the biggest expense is _____________.

Anything we own that has value is called.