OPTIONAL Discussion Questions: How would personal finance be different if you managed personal finances as a business? It may be wise to operating your personal finance as a business. Your goal should be to have more money at the end of every month compared to the previous month and to minimize debts, particularly the debts that are not necessary. Are car loans an asset or liability? They cost you money every month, but it’s an asset if you use it as a tool to go to work to make money. If you splurge to buy a luxury sports car, then that’s a liability. Just make sure you make more money than you spend overall. Consider buying a used car.
Are student loans an asset or liability? They cost you money, but the college education can be a tool to make more money. Best to have fewer or smaller loans and pay it off quickly after college. After you pay off student loans, you have more money that you could spend or put towards savings. What are some bills you have to pay every month or year? Utilities, insurance, cell phones, cable tv, internet, Costco membership. Wouldn't it be nice if you owned a cell phone company and had contracts where everybody was obligated to pay you money every month?