Finance 330 Discussion

How does the health of the economy affect your financial health? How healthy is the U.S. economy right now? On what measures do you base your judgments? How will your appreciation of the big picture help you in planning for your future?

You need a jacket, boots, and gloves, but the jacket you want will use up all the money you have available for outerwear. What is your opportunity cost if you buy the jacket? What is your sunk cost if you buy the jacket? How could you modify your consumption to reduce opportunity cost? If you buy the jacket but find that you need the boots and gloves, how could you modify your budget to compensate for your sunk cost?

Calculate your debt-to-income ratio and other ratios using the financial tools at Biztech (http://www.usnews.com/usnews/biztech/tools/modebtratio.htm)

According to the calculation, are you carrying a healthy debt load? Why, or why not? If not, what can you do to improve your situation?