Chapter 2: Money Management Strategies and Skills
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| Assets | Everything you own, including liquid assets, real and personal property, and investments.
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| Debt payment ratio | A financial ratio that measures the percentage of disposable income required to make debt payments.
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| Debt ratio | Total debt divided by total assets.
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| Debts | Everything you owe to others, including unpaid bills, credit card balances, car loans, student loans, and mortgages. Also known as liabilities
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| Fixed expenses | Expenses that are a constant dollar amount
each period.
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| Gross income | Income before taxes and expenses.
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| Insolvency | The inability to pay debts as they come due.
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| Liquid assets | Cash and near-cash assets that can be easily
converted to cash without loss of value.
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| Liquidity ratio | A financial ratio that measures the ability to
pay household expenses out of liquid assets
in the absence of regular income.
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| Market value | The price that something can be sold for today.
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| Mortgage debt service | The total dollar amount of monthly mortgage
principal, interest, property taxes, and homeowner’s
insurance.
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| Mortgage debt service ratio | The ratio of mortgage debt service to gross
income.
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| Net worth | The amount of wealth you would have left
after paying all your outstanding debts.
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| Personal balance sheet | A statement that details the value of what
you own and what you owe to others to
arrive at an estimate of your net worth.
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| Personal cash flow statement | A summary of income and expenditures over
a period of time.
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| Personal financial statement | A statement that summarizes your financial
information.
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| Savings ratio | A financial ratio that measures the percentage
of after-tax income going to savings.
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| Variable expenses | Expenses that vary in amount from period to
period.
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You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
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