STEP 3: Choose a nancial goal you would like to save for. It can be a shortterm goal [1 to 2 years} or a long this value in step 4. Select from the following: I Create an emergency fund of $1,000. I Save for a vacation that will cost $2,000. I Save to buy a $15,000 vehicle. I Save for a down payment of $40,000 to buy a house. I Save $50,000 for education for you, a spouse, or a child. STEP 4: Now set a realistic time frame (in years) for reaching the goal in step 3. The recommended range is: rate of savings: I To understand your savings rate {$ per year], divide your nancial goal by the number of years you plan tr I Enter the resuft in the Savings cell of the ANNUAL BUDGET. I Briey describe your overall savings goal and the time to achieve it next to the ANNUAL BUDGET in the s; STEP 5: Choose a housing cost {rent or mortgage) and enter the amount in the Housing cell of the ANNUAL Pay an annual mortgage of $15,000 per year. Rent an apartment for $12,000 per year. Rent a room only for $9,000 per year. I I I I Use your current annual rent or mortgage. STEP 6: Fill in the other expenditure amounts in the ANNUAL BUD-GET according to your preferences. Do so exercise, be sure to use all the income that you designated {$50,000 or otherwise}. Look ahead to step 7 to balance your budget as you work. STEP 7: Your ANNUAL BUDGET may or may not be balanced. To check, do the following: I Enter a formula to calculate your total expenditures. Adjust your expenditures until the total equals your I Next, enter formulas in the percent column to calculate each expenditure as a percentage of the total ex; I Finally, using your ANNUAL BUDGET as a reference, complete the REFLECTION QUESTIONS on the right sin