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1.
To pay yourself first means to _______.
Set aside money right away out of your paycheck. The idea is that your savings come first.
2.
In a budget, the key to successful economizing is _______.
Setting goals and prioritizing them. The key to successful economizing is setting goals and prioritizing them.
3.
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.
4.
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.
5.
In the language of retirement plans, the term "pre-tax" means that _______.
Money contributed to the plan is not to be taxed in the current year (until withdrawn). "Pre-tax" means that it is meant to not be taxed currently.