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Attempts Average: 15 1. Apply What You've Learned Financial Goal-Setting and PersonalFinancial Statements Scenario: You are 30 years old and feel like you are getting
Attempts Average: 15 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 small 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 useful in achieving financial success and security. Which of the following actions would you recommend to someone thinking about engaging in financial planning? Action Consider having the amount to be saved automatically deducted from your paycheck. Build your financial objectives on the basis of your values To make it easier to achieve your financial goals, make your them as vague and flexible as possible Live beyond your means by relying on credit cards and other loans Recommend? (Yes or No) Yes Yes No No If you wanted to answer the question, "In financial terms, where am I right now?," which financial statement would provide the best answer? The income and expense statement o The balance sheet A monthly budget The cash flow statement Your tax return
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