2.  Intro  12 Principles  True False review - discuss

3.  Part 1: Income A. Cash Flow (in / out) i. Income ii. Deductions a. Taxes -Federal Income Tax -State Income Tax -Federal Insurance Contributions Act (FICA) - Social Security and Medicare

4. b. Gross Income- c. Net Income- Other Payroll Deductions? – brainstorm Gross Income minus….. Federal / State/ City Income Tax FICA Life Ins Credit Union Savings STRS 403B Health Vision Dental Union Dues = $1100/per pay = Net Income

5. Part 2: Expenses After you know your net income- now the hard part… Dave Ramsey video Ch 7 part 1 A. Fixed B. Variable C. Periodic *pitfall = variable and periodic *common advice- 1. Start- $1000 cash 2. Finish- have 3-6 months salary on hand for emergencies 3. PYF Review Exercise 2C

6. Monthly Expenses Fixed: brainstorm  College Savings  Car Ins  Car  Home Security  Mortgage  Home Ins / Tax  Home Equity Loan  Furniture Loan  Savings  =$2000 / month

7.  Variable: - brainstorm  Natural Gas  Electric  Water Sewer  Phone (home/cell)  TV/Internet  Gasoline  Babysitter  Church/Charity  =700/month  Deductions + Fixed + Variable = $3800/month

8.  A=P (1 + i) n  Compount Interest “the most powerful force in the universe”  Rule of 72  Review Unit 3 answers  Average Savings Rates  Japan 13%, Germany 12%, UK 7%,  France 15%, Canada 7%, US…..?  -0.6%  Dave Ramsey Ch 1