Your Financial Roadmap PDF

YOUR FINANCIAL ROADMAP PERSONAL FINANCE LEARNING OBJECTIVES: 01 03 Define, prioritize, and evaluate financial Develop and implement budgeting goals across short-term, medium-term, strat...

YOUR FINANCIAL ROADMAP PERSONAL FINANCE LEARNING OBJECTIVES: 01 03 Define, prioritize, and evaluate financial Develop and implement budgeting goals across short-term, medium-term, strategies by understanding opportunity and long-term horizons. costs and regularly reviewing and adjusting the budget 02 04 Understand and manage net worth by Implement methods for ongoing tracking income, expenses, and financial assessment to monitor spending patterns to identify financial progress toward financial goals. needs, desires, and inefficiencies. 05 Identify and address financial inefficiencies to optimize personal financial management. YOUR FINANCIAL ROADMAP The first, and most basic, part of getting your finances under control is setting your goals and taking stock of what you have. Once you’ve done that, you’re in a position to move forward and maximize your financial gains. But first things first!  01 02 03 SETTING FINANCIAL WHAT’S YOUR DECIDE WHAT YOU GOALS NETWORTH? WANT 04 05 06 EVALUATING YOUR THE BENEFITS OF OPPORTUNITY COSTS PROGRESS BUDGETING 09 08 09 KNOW WHERE IT’S MONITORING YOUR FIXING THE LEAKS ALL GOING BUDGET 1. SETTING FINANCIAL GOALS START EARLY! STEP STEP 01 03 STEP Determine 02 How you’re your going to financial Decide accomplish status. what you it. want to SAVE & INVEST achieve.  2. WHAT’S YOUR NET WORTH? PRO TIP! Your net worth is the difference between all the things of value that you own and all the debts you owe. 3. DECIDE WHAT YOU WANT Go for the goal. What’s important to you? Put it in writing.  Do you envision retiring while you’re  A description of the goal still young enough to enjoy travel? The time frame for achieving it  Buy your first home or move to larger The amount of money needed home? The amount already saved  In short term, maybe a new car? Your plan for achieving goals  If your short term liabilities are greater than your current assets, paying down credit card debt makes smarter first Break it down. priority.  Set a goal worth sacrificing, is it  Short-term meaningful not to spend now for the  Long-term future enjoyment? 4. EVALUATING YOUR PROGRESS Calculating and Educate yourself Reviewing about Money Matters  Recalculate your net  Check your local worth at least annually bookstore or surf an but more frequently is online bookstore. even better.  Watch podcasts of  A good financial plan is investors/businessmen/ flexible and changes experts with your needs. 5. THE BENEFITS OF BUDGETING WHAT IS BUDGET? Image of sacrifice? NO! Focus on making it positive. A budget is all about future.  a budget is really a money plan. Budgeting and tracking your expenses show you where your money goes. A good budget plan is flexible and realistic. Create a worksheet in setting up your budget. 6. OPPORTUNITY COSTS Refers to everything you can’t use for once you’ve spent it. The opportunities you miss out on when you spend money. 7. KNOW WHERE IT’S ALL GOING  Collect as many of your bills  Every expense counts – regular and occasional expenses  Find ways to reduce spending  Calculate your net income  8. MONITORING YOUR BUDGET Making Adjustments Spending Leaks  Change in marital status  Impulsive buying,  Change in family size unused  A new job memberships, bank  Salary increase (or decrease) fees, and other  A new home small expenditures  Disability or chronic illness  Cooking VS Buying  Job loss prepared foods  A major purchase that requires monthly payments  9. FIXING THE LEAKS The Bigger Picture Mortgage, car payments, other debt payments, taxes, and insurance policies. Use software or applications to make budgeting easier.  SEATWORK #1: CREATE YOUR OWN FINANCIAL ROADMAP.