Money ManagementIntroductionMoney management is the process of knowing where you are spending your money today and having a well-thought-out plan in place for where you want it to go in the future. This program will cover the core concepts of money management and teach you how to: Set Goals Get Organied Track Spending !uild a !udget Save Money "hapter #: Set GoalsTaking the time to set goals today allows you to achieve what you want in the future.Set specific goals$inancial goals should %e specific. $ore&ample' wanting to save (#')))'))) forretirement %y age *) is a goal' %utwanting to %e rich is +ust a wish. !eforeyou start to save' determine e&actly whatyou want' when you want it' and howmuch it will cost.There are three %asic goal types: short-term ,achieva%le in under a year-' mid-term ,achieva%le in one to five years-' andlong-term ,achieva%le in five-plus years-.If you have multiple goals' you maychoose to work toward them all at once orconcentrate on one and then move to thene&t..ou can use the $inancial Goals "hart tolist your goals: $or short and mid-term goals' the calculation for how much you need to set aside each month is simple: the cost minus the amount you have saved so far divided %y the num%er of months you have to save.Example: The laptop computer you want is $800, and you would like it in six months. You have not saved anything yet. To reach this goal, you will need to set aside $!! per month "$800#$ % $!!&./ong-term goals are a little more complicated %ecause you can deposit your savings into an investment vehicle and earn interest' which will help you achieve your final savings goal. ,.ou cando this for short and mid-term goals too' %ut the interest earned is usually minimal.- 0owever' whatever you are saving for will also likely cost more in the future %ecause of inflation ,the gradual rise in the cost of goods and services over time-. .ou can use the financial calculator %elow to figure out how much you should set aside each month for long-term goals. ,1se your %est guess as to how much you will need to save and what your return will %e.- Example: Your goal is to save $0,000 in ten years 'or your child(s higher education. )' the annualrate o' return "interest& averages 'ive percent, you will need to set aside $$*.*0 each month.Be flexible"reating a %udget ,discussed in "hapter 2- will help you determine how much you can afford to save each month for your goals. If you simply can3t manage to put away the amount you thought you could' don4t give up. "onsider if you can e&tend the goal achievement date or set a similar goal that is cheaper. 5erhaps a (6'))) "ari%%ean cruise is not doa%le' %ut you can save (7'))) for a vacation in $lorida."hapter 7: Get Organied!eing organied is essential to efficient money management. Once all of your information and paperwork is in order and accessi%le' you4ll never have to waste time searching for important documents' wonder a%outaccount %alances' or miss%ill-payment deadlines.Designate a personalmoney spaceSet up an area in your homewhere you can conduct all ofyour personal financial%usiness. Ideally' it should %enear your computer and fileca%inet.Have the right home officetools.ou can organie yourpersonal finances with +ust afew home office tools: File cabinet 8 $ilereceipts' warranties'ta& returns andsupportingdocuments' paid %ills' and account statements so you can 9uickly access them. ,Ongoingaccounts should have their own folder.- $ile ca%inets come in a variety of sies' so you do not need a ton of space to stay organied. Shredder 8 To guard against identity theft' invest in a shredder ,prefera%ly one with a :cross cut; feature' where instead of slicing the paper into strips' it cuts at various angles-. 1se it to destroy all personal and financial documents %efore you discard them. Specific items that you should shred include:o