The Game of Life Part 2

Preliminary Budget

Fixed and Variable Expenses

Now that you're employed, it's crucial to budget. Fixed expenses are regular payments like rent and car payments. Variable expenses fluctuate, such as dining out and utilities. Start by categorizing your costs into these two types to manage your finances effectively.

The Proposed Budget for Fixed Expenses (Monthly)

$300 - Car Payment

$200 - Auto Insurance

$60 - Cell Plan

$300 - Gas

$500 - Rent Savings

Open Ended

Is the proposed fixed budget realistic for you?  What adjustments need to be made? List any adjustments with dollar amounts. If you have other fixed expenditures, add them with the dollar amount.

Variable Budget

$200 - Lunch Money

$300 - Entertainment

$250 - Groceries

$100 - Transportation

$50 - Healthcare

$75 - Personal Care

$50-100 - Utilities

$50 - Gifts

Open Ended

Is the proposed variable budget realistic for you?  What adjustments need to be made? Make the adjustments and include the dollar amounts.

Open Ended

What is the total dollar amount of your budget? Remember, your net monthly income is $3,250

Open Ended

If you have extra money left over after fulfilling the needs of your budget, what are you going to do with it?

Investing means putting your money into something, like stocks or property, hoping it will grow over time. You aim to make more money back than you put in. It's a way to build up your money for the future. But remember, it can be risky, and you need to understand what you're investing in.

​

Investing

Poll

Have you learned about investing your money?

• Yes, and it stuck with me.

• Yes, but I don't recall much.

• I didn't really pay attention.

• No, but I plan on learning more.

• No. I don't need to know about investing my money.

The following slide will provide you with a quick review of investing.

​

A Quick Review

Types of Investments.pdf - Google Drive

You can open this webpage in a new tab.

Copy link

Open in new tab

Planning Ahead

Since you might require rent funds sooner than your nine-month timeline, or an unexpected expense might occur, considering investing your money is essential. While placing it in a savings account is an option, the interest gained is minimal. For young investors aiming for flexibility to withdraw within six months to a year, various short-term investment opportunities provide a mix of security, ease of access, and satisfactory returns. Here are some prime selections:

Investment Banking.pdf - Google Drive

You can open this webpage in a new tab.

Copy link

Open in new tab

Yes! You Research After High School

Effective research is key in life. Select an investment banking option that aligns with your financial philosophy, goals, and short-term needs. Thoroughly investigate your chosen option to ensure it's a good fit. Consider factors like risk tolerance, liquidity requirements, and expected returns. Diligent research will help you make an informed decision to further your financial objectives.

Open Ended

Which short term investment banking strategy are you going to research? Why?

Open Ended

Share a summary of your research here.

Financial Advisors

A financial advisor is a professional who helps individuals manage their money to achieve their financial goals. They advise on investments, savings, retirement planning, tax strategies, and insurance. Financial advisors assess clients' financial situations, develop personalized plans, and offer guidance on how to grow and protect wealth. They can work independently, for financial firms, or within banks. Their expertise helps clients make informed decisions and navigate complex financial landscapes.

Open Ended

Do an internet search for three financial advisors in this area. List them below.

RHS English

"In the grand classroom of life, your English teacher's wisdom echoes true: the art of communication is the key to unlocking success and understanding in every avenue we pursue." 

Open Ended

Write a concise email to a financial advisor you have researched, covering the following points:

1. 1. Explain your interest in investing and seeking professional advice.

2. 2. Describe your specific investment goals.

3. 3. Mention the types of investments you are considering.

4. 4. Request a meeting to discuss your options and learn more about their services.

​The Compound Effect: Small, smart choices executed consistently over time create a radical difference. Tiny changes in behavior, when compounded, lead to significant outcomes--especially in the financial world.