Earning and Spending. 2/3 of GDP is made up of consumer spending What are some things that you buy on a daily/weekly/monthly/yearly basis?. Wealth Accumulation. Four Factors Income : more $$ = more saving/investing Expectations : confidence in the market = more spending, fear = more saving
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
2/3 of GDP is made up of consumer spending
What are some things that you buy on a daily/weekly/monthly/yearly basis?
Income: more $$ = more saving/investing
Expectations: confidence in the market = more spending, fear = more saving
Interest Rates: higher rate = incentive to save/invest
Taxes: higher taxes on investment = disincentive
• wage: hourly, by unit of production
- more blue collar
• salary: weekly/monthly/yearly
- more white collar
• rent: selling use of your property
• interest: selling use of your money
• Be REALISTIC!!!!
• Be future oriented
• Only include guaranteed income
• Needs then Wants
What types of jobs seem to pay the most?
Is a college education as necessary/worth the cost as it used to be?
The associates degree has a higher rate of return than the bachelor's because of the lower cost (of course).
It really depends on what you plan to do…
Barriers to Entry
Does correlation imply causation?
• all options carry different levels of risk
• Usually: high return = high risk, low return = low risk
• APR = Annual Percentage Rate of interest on principal
• Set rate vs. Variable rate
• Inflation protected?
• Compound Interest – RULE OF 72
• Ease of conversion to cash
• Usually: high return = low liquidity, low return = high liquidity
• Paper Millionaires
Get $1000 Every Year
Invest $1000 at 8%
• College, business, car, consumer
• Home loan
• Macy’s, Kohls
• Get ready for some mail…
• Past history – timely and honest
• Salary, wages
They want paid back!!
**Min. payment = $25
Balance at Balance at
Beginning End of
$ 2,000 $ 25 $ 40 $ 2,015
2,015 25 40 2,030
2,030 25 40 2,045
2,045 25 40 2,060
2,060 25 41 2,076
**Spent $125 for $-76 worth of progress
+ $1,000 @ 5%
Me – 25 yrs. old.