Planning Beginner: Lifestyle Planning

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1.
Setting a time frame is key to achieving your financial goals because it determines how you will allocate your money toward them.
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True. Setting a time frame helps you save money in advance for your goals.
2.
Housing expenses generally consume what percentage of your income?
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25-40%. Housing will be your largest expense, consuming about 25-40% of your income.
3.
Having children close together in age versus further apart may provide an economy of scale.
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True. Having children close in age may be economical due to sharing of clothes and toys as well as increasing financial aid eligibility for education.
4.
A lifestyle financial plan is based on making money.
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False. A lifestyle financial plan is based on maximizing happiness, not money. Money is part of how the happiness is attained.
5.
What's the first thing to do when planning your lifestyle?
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Figure out your dreams, desires, and goals. These should be the basis for adding in the financial component to your lifestyle.