Budgeting and Planning

1. Evaluate Financial Health

- make a personal balance sheet

- determine your net worth (assets-liability= net worth)

- prepare a personal income statement

- use ratios to monitor your financial health (assets:liability)

- watch where your money comes from and where it goes

2. Make Financial Goals

- determine what you're saving for and how much to save

3. Make a Plan for Action

- make spending conform with budget goals

4. Do your plans!

GOALS

! Long-Term Goals (Prioritize)

• Start a business

• create a retirement fund

• save for retirement through assets

• take care of older family members

Intermediate-Term Goal

• pay off major debt

• save for child’s college

• save for home improvements

• save for down payment

• finance large items (weddings)

Short term goals:

• gather emergency funds

• pay off bills + credit cards

• purchase insurance

• purchase a major item

• save for a vacation