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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