2. So…why should I start planning for the future now???

3.  Time frame of goals: ▪ Short term goals : take 1 year or less to achieve. ▪ Intermediate goals: take 2 to 5 years to achieve. ▪ Long-term goals: take more than 5 years to achieve.

4.  Step 1: Develop your financial goals.  What do you value?  Step 2: Determine your current financial situation.  Savings  Monthly income  Monthly expenses  Debts  Step 3: Identify your options.  Change your current situation, start something new, continue same course of action.  Step 4: Evaluate your alternatives.  Think about the consequences of your choices (opportunity cost).  Step 5: Create and use your financial plan of action.  Step 6: Review and revise your plan.

5. GGross Pay: total amount of money you earned for a specific time period. NNet Pay: gross pay minus deductions (taxes, health insurance, retirement, union dues). EEmployee Deductions DDisposable Income: the money you have to spend or save as you wish after deductions and expenses.

6.  An orderly program for spending, saving, and investing the money you earn.  It helps you to: 1. Determine and evaluate how wisely you are using your money. 2. Get the most from your income. 3. Prevent careless and wasteful spending. 4. Organize your sources of income so that you can maintain a plan of personal financial fitness. 5. Avoid money worries and problems by understanding the proper methods of saving, spending, and borrowing money.

7.  Budget: organized plan where you match your expected income to your expected expenses.  Fixed Expenses: expenses that remain constant.  Variable Expenses: expenses that change according to needs and short-term goals.