VM

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