GOALS AND SAVINGS BY: Dr. SCOTT KEHIAIAN

GOAL PLANNING STEPS TO GOAL PLANNING: Develop a Mission Statement Brainstorm, write financial goals Categorize Prioritize SMART Funding Strategy Action Steps

USA IS 27TH OUT OF 28 COUNTRIES! LONG-TERM GOAL (INCREASE FINANCIAL LITERACY) USA IS 27TH OUT OF 28 COUNTRIES!

SHORT-TERM GOALS MORTGAGE TO INCOME RATIO TOTAL DEBT TO INCOME RATIO Should remain below 20% of household’s gross income. Most families need to save for a large down payment and purchase a much smaller home in order to make this goal. TOTAL DEBT TO INCOME RATIO Should remain below 30% of household’s gross income. To accomplish this, families need to reduce variable expenses enough to reduce debt.

SHORT-TERM GOALS BUILD A MENU PLANNER

INTERMEDIATE TERM GOALS Percent of Net Income (PROBABLY AFTER CHAPTER 13) Fixed Expenses 35% Variable Expenses 35% Periodic Expenses 20% Savings 10%

LONG-TERM INCOME GOAL KEEP PACE WITH INFLATION

LONG-TERM SAVINGS TECHNIQUES BUDGET AS A FAMILY SET UP MONTHLY BILLS TO BE PAID AUTOMATICALLY USE THE ENVELOPE SYSTEM (CASH ONLY) NEVER USE DEBIT OR CREDIT CARDS FOR EVERYDAY PURPOSES INSTALLMENT PAYMENTS COUPONS CHANGE 60/30/10 RULE