Financial Planning 

financial resolutions and plans in the new year. 

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Budget Significance 

Setting a budget is crucial for managing personal finances effectively. 

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Goal Focus 

While many focus on personal goals, an annual budget directs attention to financial goals. 

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Initial Step - Income 

The first step is figuring out your net income, which is your gross pay minus taxes and deductions. 

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Understanding Net Pay 

Net pay is crucial, representing what you have after taxes, Social Security, Medicare, and other deductions. 

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Monthly Basis Analysis 

Viewing income on a monthly basis helps in effective budgeting. 

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Expense Calculation 

The second step involves calculating fixed and variable expenses and providing a clear plan for both. 

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Fixed vs. Variable Expenses 

Fixed expenses are predictable (e.g., rent), while variable ones (e.g., groceries) require careful monitoring. 

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Setting Financial Goals 

Experts recommend the 50-30-20 budget—50% for needs, 30% for wants, and 20% for savings. 

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Setting Financial Goals 

The final step is to set specific financial goals within the budget parameters. 

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