Strategies and Challenges to Saving
Short term saving goal (less than 2 years)
Medium term saving goals (2-7 years)
Long term saving goals (7+ years)
Why is setting financial goals important?
It doesn't happen unless you have goals
Makes you look at how you spending your money
5 ways to set a financial goal
Write them down
Make them specific
Make them measurable
Give yourself a deadline
Make sure they are your own goals
50/30/20 rule of thumb
There separate buckets based on after tax income (your take-home pay)
Mandatory(fixed) expenses- 50%: housing, electric bill
Wants- 30%: movies, going out
Savings and debt payment- 20%:
Pay Yourself First
Budgeting strategy
Build your spending plan around saving goals (20%)
50%- fixed expense
30%- variable expenses
Prioritizes savings
Challenges to savings
Spending too much on housing: 50% for expense, use 30% on housing
No defined budget
Save money later mindset
Lack of measurable saving goals
Student loan payments
Your comfort zone
Overusing credit cards
Strategies and Challenges to Saving
Short term saving goal (less than 2 years)
Medium term saving goals (2-7 years)
Long term saving goals (7+ years)
Why is setting financial goals important?
It doesn't happen unless you have goals
Makes you look at how you spending your money
5 ways to set a financial goal
Write them down
Make them specific
Make them measurable
Give yourself a deadline
Make sure they are your own goals
50/30/20 rule of thumb
There separate buckets based on after tax income (your take-home pay)
Mandatory(fixed) expenses- 50%: housing, electric bill
Wants- 30%: movies, going out
Savings and debt payment- 20%:
Pay Yourself First
Budgeting strategy
Build your spending plan around saving goals (20%)
50%- fixed expense
30%- variable expenses
Prioritizes savings
Challenges to savings
Spending too much on housing: 50% for expense, use 30% on housing
No defined budget
Save money later mindset
Lack of measurable saving goals
Student loan payments
Your comfort zone
Overusing credit cards