1. GOALS AND SAVINGS
BY:
Dr. SCOTT KEHIAIAN

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

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

4. 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.

5. SHORT-TERM GOALS
BUILD A MENU PLANNER

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

7. LONG-TERM INCOME GOAL KEEP PACE WITH INFLATION

8. 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