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