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)

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• Why is setting financial goals important?

  • It doesn't happen unless you have goals
  • Makes you look at how you spending your money

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• 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%:

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• Pay Yourself First

  • Budgeting strategy
  • Build your spending plan around saving goals (20%)
  • 50%- fixed expense
  • 30%- variable expenses
  • Prioritizes savings

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• 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

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