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Income Analysis and Budgeting Strategies

This document provides guidance on analyzing personal finances including income, expenses, assets, wants versus needs, and diversification. It instructs the reader to: 1) Analyze sources of income and expenditures, distinguish needs from wants, and identify fixed expenses that must be paid first. 2) List assets by cash value and liquidity, and consider which assets may be sold or acquired and how to reorganize the budget accordingly. 3) Diversify sources of income and investments to spread financial risk.

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Joana Marie Cabute
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63 views1 page

Income Analysis and Budgeting Strategies

This document provides guidance on analyzing personal finances including income, expenses, assets, wants versus needs, and diversification. It instructs the reader to: 1) Analyze sources of income and expenditures, distinguish needs from wants, and identify fixed expenses that must be paid first. 2) List assets by cash value and liquidity, and consider which assets may be sold or acquired and how to reorganize the budget accordingly. 3) Diversify sources of income and investments to spread financial risk.

Uploaded by

Joana Marie Cabute
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Module 2

Activity 1.0

1. Where does your income come from, and where does it go? Analyze your inflows of
income from all sources and outgoes of income through expenditures in a month,
quarter, or year.
2. Examine your budget and distinguish between wants and needs. How do you define a
financial need? What are your fixed expenses, or costs you must pay regularly each
week, month, or year? Which of your budget categories must you provide for first
before satisfying others?
3. List your assets in the order of their cash or market value (most valuable to least
valuable). Then list them in terms of their degree of liquidity. Which assets do you
think you might sell in the next ten years? Why? What new assets do you think you
would like to acquire and why? How could you reorganize your budget to make it
possible to invest in new assets?
4. How can you diversify your sources of income to spread the risk of losing income?
How can you diversify your investments to spread the risk of losing return on
investment?

Activity 1.1

Provide 3 key take away in this lesson

Instructions:
1. Write the question/s and answer\s in a yellow pad paper
2. After completing your answer\s, please take a photo and upload your work on the designated
post. (Make sure it is clear image)
3. Keep and file your hardcopy for future submission.

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