2. Money Management A system of planning for spending based on expected income

3. Budget Basic tool used for money management

4. Reasons for Financial Planning Helps you get what you want Prevents you from spending beyond means Helps maintain a harmonious home Helps keep track of expenditures Puts you in control & helps you stay there

5. Cash Flow Typical monthly income and outgo

6. Designing a Financial Plan Estimate income Record expenditures Calculate fixed expenses Create an emergency fund Calculate flexible expenses Compare income & expenses

7. Net Worth Relationship between assets & liabilities

8. Ways to stick to a budget Get rent out of way Stay away from the ATM Leave money at home Record credit card purchases Save automatically Keep money in large coins or bills Save certain denominations

9. Ways to Stick to a Budget Continued : Sacrifice something Keep checkbook balanced Set goals Consider tradeoffs Take your lunch