management 企业管理类英文版PPT课件 (40)

,2,Money Management Skills,Money Management Skills,Identify the main components of wise money managementCreate a personal balance sheet and cash flow statementDevelop and implement a personal budgetConnect money management activities with saving for personal financial goals,Chapter Objectives,Objective 1: Identify the main components of wise money management,Daily spending and saving decisions are at the center of financial planning.Decisions must be coordinated with your needs, goals, and personal situations.Money management means the day-to-day financial activities necessary to manage personal economic resources, while working toward long-term financial security.,Opportunity Cost and Money Management,Spending money on current living expenses reduces the amount you can save and invest.Saving and investing for the future reduces the amount you can spend now.Buying on credit ties up future income.Using savings for purchases results in lost interest and means savings cant be used for other purposes.Comparison shopping can save money but takes your valuable time.,Components of Money Management,Creating,and,implementing,a plan forspending, and saving (budgeting).,Creatingpersonalfinancialstatements(balancesheets andcash flowstatements of income and outflow).,Storingandmaintainingpersonalfinancialrecordsanddocuments.,Benefits of an Organized System of Financial Records,Handling daily business affairs, including payment of bills on time.Planning and measuring financial progress.Completing required tax reports.Making effective investment decisions.Determining available resources for current and future buying.,What to Keep in Your Home File,Items you refer to often.Personal and employment records.Money management records. Tax records.Financial services records.Credit records.Consumer purchase and auto records.Housing records. Insurance records.Investment records.Estate planning and retirement records.,What to Keep in a Safe Deposit Box,Safe deposit box is for records and items that would be hard to replace.Birth, marriage and death certificates.Citizenship and military papers.Adoption and custody papers.Serial numbers and photos of valuables.CDs and credit and banking account numbers.Mortgage papers and titles.List of insurance policy numbers.Stock and bond certificates.Coins and other collectibles.Copy of will.,Records on Personal Computer,Home computer.Current and past budgets.Summary of checks written and other banking transactions.Past income tax returns prepared with tax preparation software.Account summaries and performanceresults of investments.Computerized versions of wills, estate plans, and other documents.,How Long to Keep Records,Birth certificates, wills, and Social Security information should be kept indefinitely.Keep records on personal property and investments as long as you own them.Keep documents related to the purchase and sale of real estate indefinitely.Copies of tax returns and supporting data should be kept six years.,Objective 2: Create a personal balance sheet and cash flow statements,Benefits of these statementsReport your current financial position in relation to the value of the items you own and the amounts you owe.Measure your progress toward your financial goals.Maintain information on your financial activities.Provide information you can use when preparing tax forms or applying for credit.,Components of a Balance Sheet(Net Worth statement),Assets List what you own.Liquid assets.Real estate.Personal possessions.Investment assets.Liabilities Determine what you oweCurrent liabilities (< 1 year). Long term liabilities.Compute your net worth.Assets minus liabilities.Insolvent means liabilities far exceed assets.,Ways to Increase Net Worth,Increase your savingsIncrease the value of your investments and other possessionsReduce amount owed,Components of a Cash Flow Statement:Inflows and Outflows,Shows inflow and outflow during a given time period.Record IncomeNet income from employment (Net Pay)Savings and investment income.Other sources.Record cash outflows.Fixed and variable expensesDetermine Net Cash FlowUse this statement as a basis for creating a spending, saving and investment plan.,Objective 3: Develop and implement a Personal Budget,Budget: is a plan for spending in the future, such as for the next month. A budget helps youLive within your income.Spend your money wisely.Reach your financial goals.Prepare for financial emergencies.Develop wise financial management habits.,7 Steps in the Budgeting Process,Set financial goals.Estimate income from all sources.Budget amount for an emergency fund, periodic expenses and financial goals.Budget set amounts that you are obligated to pay. These are your fixed expenses.,7 Steps in the Budgeting Process,Budget estimated amounts that are to be spent for various household and living expenses. These are your variable expenses.Record actual amounts for inflows and outflows, comparing actual amounts with budgeted amounts to determine variances.Deficits and surpluses.Review your spending and savings patterns and evaluate whether revisions are needed in your savings and spending plans.,