1. Personal Finance
Chapter 4

2. Defining Your Goals Kinds of Goals
Distinguish between short-term, medium-term, and long-term goals.
Short-term (up to five years)
Medium-term (five to ten years)
Long-term (ten or more years)
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3. Defining Your Goals Asking Questions
Identify your financial goals:
What kind of housing do I want?
Where do I want to live?
What job do I want?
What about my family life?
What will I do for recreation?
How much money will I need?
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4. Defining Your Goals Asking Questions
Start planning to achieve your financial goals:
How do I get there from here?
What sacrifice does it take to achieve my goals?
Do my spending habits match my goals?
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5. Defining Your Goals Short-Term Goals
Where will I be in five years?
Will Work
For Food
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6. Defining Your Goals Medium-Term Goals
Where will I be in ten years?
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7. Defining Your Goals Long-Term Goals
Where will I be in twenty years?
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8. Defining Your Goals Goal Chart
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9. Which kind of goal would your plans for retirement most likely fall under?
Short-term goal
Medium-term goal
Long-term goal
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10. Which kind of goal would your plans for retirement most likely fall under?
Short-term goal
Medium-term goal
Long-term goal
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11. What do you think? Discussion What are your short-term goals?
What are your medium-term goals?
What are your long-term goals?
How are you going to achieve these goals?
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12. Defining Your Goals Planning Sharing Goals
How much do I want to share?
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13. Defining Your Goals Planning Saving Goals
How much do I want to save?
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14. Defining Your Goals Planning Spending Goals
How much do I want to (or can I) spend?
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15. Creating a Budget Balancing Goals
A budget helps you achieve your goals.
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16. Creating a Budget Cash Flow
Estimate your income.
Estimate your expenses.
Estimate your savings.
Estimate your sharing.
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17. Creating a Budget Creating a Cash Flow Statement
Record your income.
Fixed income
Regular wages / salary
Variable income
Overtime
Side jobs
Mowing lawns
Babysitting
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18. Creating a Budget Creating a Cash Flow Statement
Record your income.
Record your expenses.
Fixed expenses
Rent / house payment
Car payment
Food
Utilities (electric, gas, cable TV, etc.)
Fixed Expenses
Rent
$450
Car Payment
$250
Food
$275
Utilities
$125
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19. Creating a Budget Creating a Cash Flow Statement
Record your income.
Record your expenses.
Fixed expenses
Variable expenses
Auto repairs
Medical expenses
Entertainment
Unexpected emergencies
Variable Expenses
Car repair
$125
Dentist co-pay
$15
Dancing
$20
New Tire
$75
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20. Using Your Budget Creating a Budget
Use cash flow statements.
Note surpluses and deficits.
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21.  Excellent Using Your Budget Qualities of a Good Budget
Based on your values
Geared toward your goals
Practical
Flexible
Accessible and easy to use
Budget
 Excellent
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22. Using Your Budget Accounting
Records
Income
Expenditures
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23. Using Your Budget Assessing
Constantly assess and reassess budget.
Revise when necessary.
Fixed Expenses
Rent
$475
Car Payment
Food
Utilities
Fixed Expenses
Rent
$450
Car Payment
$250
Food
$275
Utilities
$125
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24. It is based on your values. It is rigid.
Which of the following is not one of the five qualities of a good budget?
It is based on your values.
It is rigid.
It is geared toward your goals.
It is practical.
It is accessible.
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25. It is based on your values. It is rigid.
Which of the following is not one of the five qualities of a good budget?
It is based on your values.
It is rigid.
It is geared toward your goals.
It is practical.
It is accessible.
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26. What do you think? Discussion
What are possible problems when trying to budget your money?
What are some examples of “budget busters”?
What are some tips for staying within your budget?
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27. The End
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