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Pay Yourself First With These Financial Literacy Tips
- 1. Paying Yourself First The Principles Of A D V A N C I N G E Q U I T Y T H R O U G H F I N A N C I A L L I T E R A C Y
- 2. MARTEL MANN Bachelor Degree in Economics & Finance Master Degree in Finance Held Series 7 & 63 Certified Treasury Professional 8 Years of Professional Finance Experience Cofounder of Mann vs Money Cash Manager at Washington University “I was 21 years old in my last year of college when I found out I had a credit score in the 400s. I also had no savings, no investments, and no plan. This changed my life. Since then, I have drastically improved my financial situation and I have been on a mission to help others improve theirs.”
- 3. What does wealth mean to you?
- 4. Wealth is usually a measure of net worth; that is, it is a measure of how much a person has in savings, investments, real estate, and cash less any debts. www.meriam-webster.com
- 5. Assets - Liabilities = Net Worth Assets (Earns $): Liabilities (Spends $): Cash Stocks Retirement Account Rental Property Mortgage Payment Car Payment Credit Cards Student Loans
- 6. In 2010, the median net worth for black families was $4,900 vs. $97,000 for white families. Blacks are nearly twice as likely as whites to have zero or negative net worth. Fewer than half black households own homes. The median black household owns no stock. Wealth for Black America stateofworkingamerica.org
- 7. Why Does Building Wealth Matters?
- 8. Retirement (nobody wants to work forever) Generational Wealth (legacy) Financial Freedom Creating Opportunities for Others (giving) Why Build Wealth?
- 9. What does pay yourself first mean?
- 10. To pay yourself first means simply this: Before you pay your bills, before you buy groceries, before you do anything else, set aside a portion of your income to save. getrichslowly.org
- 11. Create and Maintain a Budget Manage Your Expenses and Stick To The Budget Save! Invest! Healthy Financial Habits to Help You Pay Yourself First
- 12. Spending Money = Income - Fixed Expenses Income: Fixed Expenses: Primary Job Side Hustle Money From Parents Refund Check Savings/Investments Housing Car Payment Food/Groceries Self-Care Cell Debt Creating a Monthly Budget
- 13. Excel YNAB (You Need a Budget) Mint PocketGuard Wally Creating a Monthly Budget
- 14. Why is managing your expenses so important? Person A: Person B: Income: $2000 Expenses: $1500 Remaining: +$500 Income: $5000 Expenses: $4800 Remaining: +$200 Managing Your Expenses
- 15. Have a cushion for the unexpected Automate your savings Have your savings not linked to your checking account Look for $0 minimum balance and no fee accounts Look for accounts with high savings rates - Ally 1.90% - Discover 1.90% Rainy Day: Tips to Saving
- 16. A stock is a share of ownership of a company (think pie) Investing: Stocks 101 What is a stock?
- 17. Companies issue stock to raise money to expand or grow their business When you own a stock, you are called a shareholder Stocks are bought and sold on stock exchanges such as the New York Stock Exchange (NYSE) and NASDAQ Investing: Stocks 101 What is a stock?
- 20. Buy low and sell high (appreciation) - Stocks move with the crowd - Average annual return of market is 10% Dividend payments - Companies pay cash to you - Several companies have consistently paid dividends for 50 or more years Investing: Stocks 101 How do investors make money?
- 21. You can lose money - The stock market is up and down - Company Specific Risk - Diversification What are your goals? - Short Term Goal (Save for a home, start business) - Long Term Goals (Retirement, Financial Freedom) Investing: Stocks 101 Things to consider before investing
- 22. Date of Birth Social Security Number Permanent/Physical Address Bank Account Info (To Deposit Money) Beneficiary Information (Name, Address, DOB, SSN) Investing: Stocks 101 What you will need to open an account?
- 23. Robinhood - free - easy to use Stash - Can invest as little as $5 at a time - Charges $1 a month for the basic account TD Ameritrade - free for most trades - more advanced tools - for the more experienced Investing: Stocks 101 Where to invest?
- 24. Individual - most common - taxable Individual Retirement Account (IRA) - Traditional (pre-tax) - Roth (after-tax) Investing: Stocks 101 Account Types
- 25. Time is one of your biggest factors
- 26. Saving $50 a Month Until Age 50 *Not factoring in interest
- 27. Investing $50 a Month Until Age 50 *Assuming a 10% annual return
- 28. Thank You F O R Y O U R T I M E