Estimate income available for saving and investing

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Estimate income available for saving and investing: subtract anticipated living expenditures from anticipated take-home pay. 27
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Implementing the Cash Budget Put it in place for a month. Compare actual expenditures in each category with budget amounts at the end of the month. Evaluate whether you change budget estimates or exert self-control? Stick to your desired budget for a month with an envelope system. 28
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Figure 2.7 Budget Tracker 29
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Hiring a Professional Three options for working with professionals 1. Go it alone and have your plan checked by a professional. 2. Work with a professional to develop a plan. 3. Leave it all in the hands of a pro. 30
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What Planners Do More unique financial situations need professional help. They give advice. You still need to know the basics and still bear ultimate responsibility. 31
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Choosing a Professional Planner Check accreditations: Personal financial specialist (PFS) Certified financial planner (CFP) Chartered financial consultants (ChFC) Check experience Referrals 32
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Choosing a Professional Planner Fee-only planners Fee-and-commission planners Fee offset planners Commission based planners 33
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Summary Use a balance sheet to determine the level of wealth that you or your family have accumulated on a given date. Use an income statement to understand where your money comes from and goes to be able to save enough to meet goals. Use financial ratios as targets or standards in managing financial resources. 34
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Summary A sound record-keeping systems makes tax preparation and tracking of spending easier. Use a budget to plan and evaluate spending and saving. Professional financial planners can help by validating your plan or developing a plan. 35
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Figure 2.8 - Web-Based Financial Planning with Mint.com 36
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Figure 2.8 Web-Based Financial Planning with Mint.com (cont.) 37
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End of Chapter 2 Slides 38
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