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Real Life Example
A family I know was saving up for the long term goal of building a house. Every month they estimated how much they would spend on different things as well as set money aside for various things, one being this house. They followed this budget really well and were able to build their house. I think sometimes it was hard because having a budget means you can't go out and buy or do everything you want to because you only have a certain amount for things. -
Goals
Why make financial goals? Without making a goal you won't know how much money you will need to reach it, and you won't have any money to reach it without setting some aside. Future goals cannot be met without budgeting and saving 3.1 p2). -
Create Long Term Goal
After setting a long term goal, estimate how much getting to that goal will cost and choose a reasonable time for it to be achieved by (3.1 p3). -
Budgeting
Before deciding how much money to set aside each short term goal, you need to see how much you make and your expenses. After cutting out frivolous things, choose an amount of the extra to put in your savings for your long term goal (3.1 p2). -
Short term goals
Make sure you are keeping up with short term goals to be on track to complete your long term goal. This should include a certain amount of savings for a period of time like a month so you keep building up on that money set aside for your long term goal (3.1 p3).