1. Pay Yourself First (PYF) – page 31
This is where you create a savings account where money is AUTOMATICALLY deducted from your paycheck.
Your money is guaranteed to be saved.
Why do this? Homes need repairs, cars get totaled, unexpected medical bills, et cetera….

2. Opportunity Cost
Whenever we make a decision we ultimately turn down another.
EX: By saving money you now have less spending money and vice versa.
Opportunity cost is important when working out your budget and deciding how much money to spend in relation to how much money you want to save.

3. Co-Pay vs Deductible
Co-Pay  We pay a portion of the medical bill along with the insurance company
Ex: paying $30 at the doctor’s office
Deductible  We have to pay a set amount before the insurance company starts paying
Ex: Paying $3,000 before the insurance covers the rest

4. 3 Major Forms of Taxes Income  Money taken out of your paycheck
This would be a deduction as your income goes from Gross to Net
Sales  Money you pay in addition to the good or service you’re paying for
You buy a $20 shirt with 7% sales tax which means you pay $21.40 instead of $20.
Property  Taxes on houses or cars among others

5. Deductions from a Paycheck
Deductions are the money taken out of your gross income and there are many forms of them
Federal and State Income Tax
Health Insurance
Social Security
Medicare
Retirement (optional)
Savings (optional)