FREE Certified Trust and Financial Advisor Questions and Answers
It is a thorough financial report that projects future income and expenses.
A budget is an estimate of income and expenses for a given future period of time that is often created and reviewed on a regular basis. Any organization that wishes to spend money, including businesses and governments, as well as individuals and households of any economic level, can create a budget.
You can refer to balance sheet and income statements that are crucial planning tools for creating and maintaining personal financial plans as:
A personal financial statement is a spreadsheet that lists the assets and debts of a single person, a married couple, or a company at a certain moment.
It is an inflation gauge based on changes in the prices of products and services for consumers:
The change in prices people pay for products and services is tracked by the Consumer Price Index (CPI). All urban consumers and urban wage earners and clerical workers are the two population groupings whose purchasing habits are represented by the CPI.
It is essentially a technique for creating financial statements that only records transactions involving genuine cash outlays.
According to the cash basis of accounting, income and expenses are only recorded when money is actually exchanged. The accrual basis of accounting, which records income and costs when they are generated or incurred regardless of when money is actually transferred, is more complex than this system.
Financial planning must take inflation into account heavily. It has an impact on both the prices we pay for goods and services as well as the wages we receive from our work. Each dollar can purchase the following quantity of products and services at any given time:
The value of a currency is determined by how many products or services one unit of that currency can purchase.
A person's immovable tangible assets include their land and everything fixed to it, such as a house.
Real property includes all of the elements of real estate as well as ownership rights, such as the ability to hold, sell, lease, and use the land.
An asset's true value, price, or the amount for which it can fairly be anticipated to trade on the open market is:
Real estate's fair market value (FMV) is the estimated price at which a property will sell on the open market. A willing buyer and seller who are both reasonably knowledgeable about the subject property agree on the FMV.