Business Administration - Financial Planning RFC230 Lecture Notes - Lecture 2: Cash Flow, Personal Grooming
19 Jan 2017
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4 lesson 2 part 1 budgeting and savings. Key measures for better budgeting: 1. Set realistic goals and adjust savings rates as income rises (e. g. set goals in percentages rather than dollar amounts: 2. Margin of error: conservatively estimate income and overestimate non-discretionary expenditures. Do not include highly unpredictable income in cash flow projections (e. g. bonuses: 3. Avoid paying penalties for spending: high interest credit cards; overdraft interest; late payment charges, etc: 4. Track income and expenditures monthly (use budgeting apps: 5. Pay yourself first set-up automatic investment plans: 6. When making discretionary spending decisions, ask yourself (cid:862)what else ca(cid:374) i do this sum of money that is more valuable to (cid:373)e? (cid:863: 7. Ay off high interest consumer debt first. Increase the frequency or amounts of debt payments (e. g. mortgage payments): 8. Maximize participation in employer-sponsored savings programs that match your contribution levels. Identify variable income sources and predictable income sources.
