The document provides steps for better managing personal finances: 1. Develop a financial plan by prioritizing goals like shelter, transportation, education, and saving. 2. Create a budget that tracks income and expenses, keeping expenses below income. Variable and fixed expenses should be accounted for. 3. Learn about investment options like CDs, mutual funds, bonds, stocks, and commodities, and make investing a priority. 4. Purchase necessary insurance like renters, auto, life, and property insurance. It also distinguishes between good debt for goals/necessities and bad credit card/personal loan debt, and assigns readers to track expenses and complete a worksheet.

1. FINANCE
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Read the link on website for today and how do you
interpret the findings from this article with that of the
homeless man?

2. THERE IS NO SOLUTION TO HANDLING
MONEY.
Steps have been identified to assist with better
management of finances through www.nefe
National Endowment for Financial Education

3. STEP 1—FINANCIAL PLAN
 Develop a Plan
 What do you want to acquire?
 Shelter
 Transportation
 Education
 Other
 Select ONE as a priority and work on achieving this to it’s
duration.

4. STEP 2--BUDGET
 Determine where your money is spent or should be
spent.
 Itemize all items for income
 Itemize all items for expenses
 Variable (not always going to be the same (electricity, gasoline,
food, etc.)
 Fixes (always the same….cable, phone, rent, etc.)
 Stick to your designated budget
 Expenses must be less then income

5. STEP 3--INVESTING
 Familiarize yourself with choices:
 Certificates of Deposit (compound interest)
 Mutual Funds (variety of stocks in one portfolio)
 Bonds (reaches date of maturity)
 Specific Stock
 Commodities (gold/silver)
 Savings
 Always Pay Yourself First

6. STEP 4--INSURANCE
 Purchase Insurance for items that you are unable to
afford without:
 Renters
 Automobile
 Fire/flood/contents
 Life

7. DEBT
Good Debt Bad Debt
 Mortgage that is  Credit Card
affordable  Personal Loans
 Loans that are for goals  Line of Credit
identified or necessities
and will be repayed.
 Education
 Business
 Vehicle

8. IDENTIFY YOUR OWN STYLE
 Select an individual that feel handles $ well.
 Try to duplicate some of their efforts.
 What do you feel you do well now?
 Where do you feel you may need some assistance?

9. TRACKING YOUR EXPENSES--ASSIGNMENT
1. Determine what you feel is an average monthly
budget you could survive and live.
2. Complete the worksheet.
3. Which items do you feel do not pertain to you on
the worksheet within you five year plan by writing
―N/A‖ on the space
4. Read—pp
5. Hand-in Completed Worksheet – Finish for Wed.