Barriers that could keep you from achieving your financial objectives

• What are the barriers that could keep you from achieving your financial objectives? Check all that applies.
A. Procrastination
B. Not having a budget
C. Having high income
D. Having adequate insurance
E. Not having excess debt

Short Essay Questions: Please use up to 3 sentences to answer each question. Bullet points are also acceptable. (3 pts each)
• Why is an emergency fund important to your personal financial well-being? Please use real world examples and explain.

• How much of emergency fund you should set aside? And why?

• How does a bad economy affect your need for an emergency fund? Please explain why.

• What are the possible downsides of not having a budget for your monthly cash flow?

• Think about your own social security benefits when you plan to retire. How do you think benefits will change between now and the time you plan to retire? How does this affect your planning for retirement?

Create a budget plan:
Mike wants to save for a car down payment of $3,000 in 6 months. He currently has no savings at all. Mike came up with his income statement and asked for your help in designing a budget that could help him achieve his saving goal. (7pts)
Monthly Income Current Situation Budget Plan
Income
Part-time Job $850

        Total Income:   $850       Total Income:

Monthly Expenses Non-Discretionary Discretionary Current
Situation Expenses
Groceries $250
Phone bill $30
Dinning out $100
Gym Fee $25
Netflix Subscription $15
Spending on Games $50
Gas $50
Car insurance $100

Total Expenses: $620       Total Expenses: 

Net Surplus / Deficit:  $230       Net

Barriers that could keep you from achieving your financial objectives

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