Personal Finance

Methods of Keeping Records Spreadsheets and Databases
Spreadsheet A spreadsheet is a series of rows and columns displayed on a computer screen. It allows the operator to perform mathematical calculations.
Database Computer data uses a list of credit or debit purchases.
Income Money received on a regular basis
Types of income Wage, Salary, Commission, Royalties, Profit, Dividend, fee, rent.
Wage Income earned by casual employees, earned by the hour.
Salary Income earned by Full time and Part time employees. It is a fixed annual amount that can be paid weekly, fortnightly or monthly.
Commission A percentage of the amount sold by the employee
Royalties Income generated through the production and sale of intellectual property (i.e. books, movies, music).
Profit Income generated for business owners when businesses revenue is higher than their expenses.
Dividend Income earned by shareholders, this is a percentage of business profits to shareholder owners.
Fee Income earned by professionals, they are paid an amount each time they provide their service.
Rent Income earned by leasing out property that is owned by the individual.
Tax rates Australia has a progressive income tax system.
Budget A budget is a statement of a persons income and expenses over a period of time.
Factors that affect our spending Income, Age, Location and Wealth.
Purpose of Insurance To protect goods from being stolen and from the person loosing their money.
Health Insurance Ensures any medical issues that may be faced through my your life.
Life Insurance Ensures any costs after you die.
Interest Rates The cost of borrowing and the return on savings
NBIF Stands for: Non Banking Financial Intermediary. This includes Credit Unions, Aussie Home loans and other non-government backed bank institutions.
Banks Banks are money holding institutions backed by the RBA (Royal Bank of Australia).
Benefits of high Interest Rates Savers and overseas investors, as they earn returns on savings.
Benefits of low Interest Rates Borrowers as they have lower rates to pay if they do not pa their money back on time.
Repossession Goods taken away from consumers if they do not make their repayments to either the banks or NBIFs
Bankruptcy If you are legally bankrupt you must not get a loan for 5 years, you also cannot start a business for 5 years. People declare bankruptcy if they cannot pay back their creditors (who they owe).
Defaulted Loan Defaulting the loan means you have failed to carry out the terms of the contract and legal action can be taken.
Investing Where you put your money into assets to make a profit.

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