Making a Plan
Setting goals
Some people find it hard to deal with money. They may have bad credit or fears from their past. Other people just don’t know where to begin.
A good place to begin is to set financial goals. It is easier to save money if you know why you are saving it. There are two kinds of financial goals:
Long Term – usually costs a lot of money and takes more than a year. Examples: to go to college, to buy a house, to retire.
Short Term - usually costs less money and takes less than a year to reach. Examples: to take a trip, to buy a special outfit.
After you know the goal, decide when you want to reach it and estimate how much it will cost:
My Goal |
Total Cost |
When I want it by
(how many months from now) |
Monthly Savings Needed
(divide total cost by number of months) |
Trip |
$800 |
10 months |
$80 |
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It is very important to see your goals. List your goals and put the list where you can look at it often. Be creative! If one of your goals is to buy a car, look through old magazines and cut out pictures of cars. Every time you see your goals, you get a little closer to reaching them.
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