FIN 221 Lecture Notes - Lecture 3: Alimony, Telephone Numbers In The United Kingdom, Negative Number
Chapter 3: Money Management Strategy: Financial Statements and Budgeting
Successful Money Management – the day to day financial activities necessary to manage your personal
economic resources while working toward long-term financial security.
o 3 Components of Money Management:
1. Storing and maintaining personal financial records and documents (financial documents)
An organized system of financial records provides a basis for:
o Handling daily business activities i.e. bill paying
o Planning and measuring financial progress
o Completing required tax reports
o Making effective investment decisions
o Determining available resources for current & future spending
Locations:
o Home file categories
Personal and employment records
Tax records
Credit records
Housing records
Investment records
Money management records
Financial service records
Consumer purchases and automobile records
Insurance records
Estate planning and retirement records
o Safe deposit box/fireproof safe
Birth, marriage, and death certificates
Citizenship papers
Adoption, custody papers
Military papers
Serial numbers of expensive items
Photographs or videos of valuable belongings
Certificates of deposit
List of checking and savings account numbers and financial institutions
Credit contacts
List of credit card numbers and telephone numbers of issuers
Mortgage papers, title deed
Automobile title
List of insurance policy numbers and company names
Annual stock and bond statements
Rare coins, stamps, gems, and other collectables
Copy of will
o Computer/phone
Scanned copies of documents
Spreadsheet summaries of budgets, investment records
Digital versions of income tax returns, wills, and estate plan
Apps for banking activities, financial records keeping, and investment
transaction
o What not to keep
Wastebasket
□ Receipts for small, non-tax-deductible purchases
□ Expired warranties
Shredder
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Chapter 3: money management strategy: financial statements and budgeting. Rare coins, stamps, gems, and other collectables. List of insurance policy numbers and company names. List of checking and savings account numbers and financial institutions. List of credit card numbers and telephone numbers of issuers: computer/phone. Digital versions of income tax returns, wills, and estate plan. Apps for banking activities, financial records keeping, and investment transaction: what not to keep. Quarterly investment account statements (keep the annual summary statements) Documents that you no longer need with personal information such as your social security number of account numbers. Make sure personal data files are completely erased: creating personal financial statements (balance sheets and cash flow statements of income and outflows) (financial statements) Net worth statement aka statement of financial position (what are you worth: what you own what you owe = your personal net worth, update this once a year, step 1: list items of value.
