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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.
You can find out where you are spending money needlessly by _______.
Tracking your spending for a while. The value of tracking your spending is that you become aware of every expense you make.
3.
An advantage of keeping money in a tax-deferred retirement plan is that you might pay lower taxes on the money when you eventually take it out. This is because _______.
You may be in a lower tax bracket in retirement. Most retirees take in less income in retirement, which typically puts them into a lower tax bracket. This is not a given for everyone, though.
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.
An effective way to "pay yourself first" so that you dont know your money has been taken out of your paycheck is to set up _______ savings program.
An automatic. The key is to make it automatic so that it has been set aside before you know it.