Personal budgeting, expense tracking, cash flow management, emergency funds, and savings strategies.
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Foundation terms you need to know first (37 terms)
A tax refund is a reimbursement to taxpayers of excess tax paid to the government. For real estate investors, it represents a potential source of capital for new investments or property improvements.
Business finances involve the management of all money-related activities within a company, including income, expenses, profit, and cash flow, crucial for understanding investment performance.
Liabilities are financial obligations or debts that an individual or business owes to others, representing money that must be paid back in the future.
Consumer debt is money owed by individuals for personal goods and services, such as credit card balances, auto loans, and student loans, which directly impacts an investor's financial health and borrowing capacity for real estate.
The percentage of your disposable income that you save rather than spend, a key metric for personal finance and crucial for building capital for real estate investments.
Complex strategies and professional concepts (1 terms)
A contingency fund in real estate is a dedicated reserve of money set aside to cover unforeseen property-related expenses, major repairs, or periods of income loss, safeguarding an investment from unexpected financial shocks.
The Cost of Living refers to the amount of money needed to cover basic expenses like housing, food, taxes, and healthcare in a certain place and time, impacting real estate investment decisions.
The amount of money an individual or household has left to spend or save after paying income taxes. It's a key indicator of financial health and purchasing power.
A readily accessible pool of money set aside to cover unexpected financial challenges, crucial for both personal and real estate investment stability.
Financial discipline is the practice of managing your money responsibly and consistently adhering to a financial plan to achieve your investment and personal financial goals.
Financial education is the process of learning how to understand and effectively manage personal finance concepts like budgeting, saving, investing, and debt to make informed financial decisions.
Financial freedom is the state where your passive income consistently covers all your living expenses, allowing you to live without needing a traditional job.
Financial habits are the routine behaviors and decisions individuals make regarding their money, influencing their financial well-being and ability to achieve investment goals. These habits are crucial for building capital, managing debt, and securing favorable financing for real estate ventures.
Financial planning is the comprehensive process of managing your money to achieve personal and investment goals, involving budgeting, saving, investing, and risk management.
A financial profile is a comprehensive summary of an individual's or entity's financial health, encompassing income, expenses, assets, liabilities, and credit history, crucial for assessing creditworthiness and investment capacity.
Financial readiness is the state of having your personal finances in order, including stable income, manageable debt, a strong credit score, and sufficient savings, to confidently undertake real estate investments.
Financial reserves are liquid funds specifically set aside by real estate investors to cover unexpected property expenses, vacancies, and capital expenditures, ensuring the stability and resilience of their investment portfolio.
Explore complementary areas that build on budgeting & cash management concepts
Credit scores, debt consolidation, loan management, credit repair, and debt payoff strategies.
Macroeconomic concepts, interest rates, inflation, Federal Reserve policy, and economic cycles.
Wills, trusts, estate taxes, succession planning, beneficiary planning, and wealth preservation.
Key financial calculations, ratios, and valuation methods used to analyze real estate investments and performance.