Money Management - Head Matters

print

9. Step 4: Save and Invest


Create a savings and investing plan

Notice we included a line for savings on this expense worksheet. That’s what savings is—an expense. If you think of saving money as a regular monthly expense, you will be more likely to stick with a savings plan. In fact, we will keep stressing that “You should pay yourself first” when paying bills. But notice, Henry didn’t “spend” anything for savings!

So, If Henry wants to achieve his three top priorities—buy a coat, buy a sound system, and start college—he must plug $384 into his “savings” expense records. When he does, the deficit between income and expenses goes up to $454 a month.
 

Totals  Per Month
Henry's total monthly income (from Step 1) $2,165
Henry's total monthly expenses (from Step 2) $2,619
Balance (subtract expenses from income): $(454)

Adobe Flash Player Required

Get Adobe Flash player
View Transcript
OK, you got me—I give up. Obviously I don’t make enough money to protect myself and buy the things I want. I already spend every cent I make and there’s nothing extra there. I’m just too poor to get ahead.

Current Course:
Money Management

Adobe Flash Player Required

Get Adobe Flash player
Sign In to track your progress.

my toolbox

my toolbox

Groups
Close

Please sign in

In order to save a page/activity in either your toolbox or favorites you must first be logged in.