Provided byRon Ratliff, CPA7703 North Lamar Blvd., Suite 128Austin, TX 78613(512) 206-4228info@ronratliffcpa.comwww.ronratliffcpa.comMoney Matters: Keeping Track of Your Money

Granddad’s Coin Purse

Money Matters – How?Reaching milestonesBuying your first homeGetting marriedBecoming a parentStarting or buying a businessRetirementEstablish healthy creditCharacterCapacityCollateralOther

How does it matter to you?Your lifestyle – the ability to live like you wantYour peace of mind – you’re prepared for difficult timesYour retirement – you know what you want and you’re prepared to take advantage of opportunitiesYour children’s education – a good education is the single most valuable gift a parent can give a child

Relating With Money

In his book, Making Love Last Forever, Gary Smalley identifies 5 key differences between men and women:Men love to share facts, women love to express feelings.Men connect by doing things, women connect by talking.Men tend to compete, women tend to cooperate.Men tend to be controlling, women tend to remain agreeable.Men tend to be independent, women tend to be interdependent.5 Behavioral Differences

The Emergency Fund:Men – “Boring…not sophisticated enough.”Women – “The most important key to our financial plan.”Shopping:Men get good deals by negotiating. Women get good deals by hunting.Financial Problems:Men lose self-esteem, because with men money usually represents a scorecard.Women face fear or even terror, because usually with women money represents security.Men, Women & Money:

Keeping Track of Your MoneyThe Simplified Spending PlanA plan for every dollar before it arrivesKeeping a recordWrite it down!Don’t over-complicate things – just be consistentSupport one anotherAgree on a threshold that neither of you will spend without discussing it with the otherLock away your credit cards – stop digging yourselves deeper in debt!

Simplified Spending PlanIncome (Take-Home)ExpensesZERO

Recurring CostsFixed & Recurring Costs

Envelope Expenses Variable Costs

Plan to SpendZERO

Typical Family Expenditures

Always tell the absolute truth.Use the power of cash.Cash is visual.Cash is emotional.Cash is immediate.Be prepared to walkaway!Shutup!Say “That’s not goodenough.”Avoid the “Goodguy, Badguy” routine.Ask for the “freetoaster”.7 Basic Rules of Negotiation

Develop POP – (POWER OVER PURCHASES)Wait overnight before making a purchaseCarefully consider your motiveNever buy anything that you do not fully understand (KISS)Keep the “Opportunity Cost” in mindSeek wise counselMaintaining Control over Purchases

Are you a spender or a saver? How do you know this?What advantages do singles have when it comes to finances? Disadvantages?In a marriage, why should a spending plan be agreed upon by both partners?Discussion Questions

Questions?