1. Apply What You've Learned - Financial Goal-Setting and PersonalFinancial Statements Scenario: You are 30 years old and feel like you are getting nowhere with your financial goals. At the end of each month, you have a hard time understanding where all your money went. You have decided it is time to take a hard look at your current financial status. You currently have $\$ 80$ of cash on hand, a checking account with a balance of $\$ 600$, and a savings account containing $\$ 1,500$. You own a sinall condo currently worth $\$ 120,000$ with a mortgage on which you still owe $\$ 100,000$, and on which you pay $\$ 600$ per month. You own personal property (furniture, television, computer, etc.) worth $\$ 8,000$. You have inherited Treasury bonds from your late aunt worth $\$ 12,000$. You participate in a $401(k)$ retirement plan, now worth $\$ 30,000$, in which you are $100 \%$ vested. You own a car originally valued at $\$ 28,000$, now worth $\$ 12,000$, on which you still owe $\$ 1,200$, and make monthly payments of $\$ 250$. Finally, you have credit card debt of $\$ 2,500$ on which you pay a constant $\$ 125$ per month. Developing a set of structured and deliberately formulated financial plans is very usefur in achieving financial success and security. Which of the following actions would you recommend to someone thinking about engaging in financial planning? Action Recommend? Don't bother to set target dates for achieving your Enancal goals. Start saving early in life and save throughout your life. If your employer offers a retirement pan, don't participate in it. Pay credit card balances in full each month. (Yes or No)
If you wanted to answer the question, "In finandial terms, where am I right now?", which financial statement would provide the best answer? Your tax return A monthly budget The cash flow statement The income and expense statement Q The balance sheet Think about your financlal condition above and the need to organite it into financlal statements, and then answer the following questions: Question: In what section of a personal balance sheet will you record your... Answer credit card balances? personal property? mortgage loan? checking account? $401(k)$ account? Your car should be recorded at a value of on your pertenal balence sheet, whle your car payment should be recorded at a value of on your personal cash flow statement.
Complete the following condensed personal balance sheet: Personal Balance Sheet ASSETS Total monetary assets Total tangible assets Total investment assets Total assets LIABILITIES Total short-term liabilities Total long-term liabilities Total liabilities NET WORTH Total liabilities and net worth $\$$ $\$$ $\$$ $\$$ $\$$