I need help with in Personal Finance.

Need help with this problem: Personal Finance?

• Preparing a Personal Balance Sheet: Using the items to prepare a balance sheet and a cash flow statement. Determine the total assets, total liabilities, total cash flows, and total cash outflows. Problem 3# Rent for the month, $650 Auto insurance, $230 Monthly take-home salary, $1,950 Household possession,$3.400 Cash in checking account, $450 Stereo equipment,$2,350 Savings account balance, $1,890 Payment for electricity, $90 Spending for food,$345 Lunches/parking at work,180 Balance of education loan, $2,160 Donations, $70 Current value of automobile, $7,800 Home computer,$1,500 Telephone bill paid for month, $65 Value of stock investment860 Credit card balance, $235 Clothing purchase, $110 Loan payment, $80 Restaurant spending, $130

• Answer:

  2 of the most basic tools of financial literacy are your budget and your balance sheet. There is a third as well that you should get informed about. You really need to improve your knowledge of these tools to upgrade your financial literacy. You life and your finances will be much better for it. So get yourself a monthly budget spreadsheet and a personal balance sheet spreadsheet and fill them out properly. One item I notice is that you include household possessions and computers as an item on your balance sheet. They do not count as assets as lenders cannot put a lien on them. This is just one of a huge number of items you need to get informed on to achieve financial literacy.