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1.
The key to successful financial planning is managing ones _______.
Cash flow. The key to a successful financial plan is managing ones cash flow.
2.
Saving tiny amounts of money periodically is a nice idea, but is not practical.
False. Saving small amounts periodically can be done by setting them aside and putting them into a savings or investment account, and they can grow substantially over many years.
3.
If you find it difficult to make a habit of diverting small amounts of money into savings, it may help most if you establish _______ first.
A goal. Having a goal gives you some direction for saving.
4.
Tax-deferral means _______.
You don't pay taxes on your retirement earnings until you withdraw them. Tax-deferral means your earnings are sheltered, though you may still be taxed on your contributions and on your savings when you withdraw them.
5.
To pay yourself first means to _______.
Set aside money right away out of your paycheck. The idea is that your savings come first.