Personal Records Good personal record keeping makes budgeting

Personal Records Good personal record keeping makes budgeting and long-range planning easier!

Four important personal records n Records of Income and Expenses n Net Worth Statement n Personal Property Inventory n Tax Records

1. Records of Income and Expenses n W-2 Forms – show the money earned and deducted from last year ¡ n You may need this later to collect benefits (i. e. social security) Other: Bank showing interest on savings, receipts listing charitable contributions, medical bills

2. Net Worth Statement List of Assets and Liabilities n ¡ ¡ n Assets – items of value that a person owns (Checking acct. , Savings, Car) Liabilities – amounts of money owed to others (Ex: Loan on a car) Need it when you apply for a loan or credit Where do you want to be?

Net Worth Equation Net Worth = Assets – Liabilities Text page 179

Who’s got the Benjamins? $500 million (www. therichest. org) $3 billion (www. exploredia. com)

$$$$$$$ n n $ 54 million (www. exploredia. com) $112 million (www. exploredia. com)

3. Personal Property Inventory n A list of valuable items you own & the price you paid n n Any item of value; clothing furniture, appliances, etc. Use for fire, theft, or property damage insurance claims

4. Tax Records n Tax payers should keep copies of their tax returns, W-2 forms, and other receipts n Keep for 3 years – at least! n IRS has a legal right to audit your taxes and supporting records for 3 years after the date of filing the return