Establishing Personal Financial Plans to Achieve your Goals

Lydia's goal is to open a childcare business in one year.  She needs $1,500 for start up costs.  She received a loan for $500, but will have to save the other $1,000 on her own.  Using the following steps, Lydia figured out how much money she would have to save each pay period.

• Determine your financial goal.
• Decide your timeframe for achieving your goal. 
• Determine the amount of money you need.  
• Identify any savings you have for the goal. 
• Subtract column C (current savings) from column D (the money you need) to determine the amount of money you need.
• Identify the number of months in your timeframe.
• Divide the money needed (D) by the timeframe (E).

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