Personal money mgt budgeting

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Unit one of Floyd Saunders' Personal Money Management Seminars - Learn the basics of budgeting and why managing your money starts with controlling spending. This is the first unit in a series of six that include: buying your first home, credit cards, living on your own, handling credit and savings/investing. Contact me for the instructor's guide and participant workbooks.

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Personal money mgt budgeting

  1. 1. Unit One: budgeting Getting Your Finances on Solid Ground June 2012Saunders Learning Group, LLC, Andover, KS
  2. 2. Topics Tracking your money flow Maximizing your income Thinking about tomorrow Creating a budgetSaunders Learning Group, LLC, Andover, KS
  3. 3. Training from Saunders Learning Group Saunders Learning Group provides a variety of training programs, workshops and seminars targeted to the financial services industry. Programs are available in a wide range of topics, and we are specialists in developing custom programs that are targeted to your needs. Contact the founder, Floyd Saunders at 316-680-6482 or at floyd@floydsaunders.com for more information. Saunders Learning Group, LLC, Andover, KS3
  4. 4. Welcome IntroductionsSaunders Learning Group, LLC, Andover, KS
  5. 5. Tracking Your Money Flow  Create a spending plan o Identify your income o List your expenses o Compare income and expensesSaunders Learning Group, LLC, Andover, KS
  6. 6. Tracking Your Money Flow Plugging Spending Leaks o An example of a spending leak: You buy coffee every morning at $3.50 a day. That is $17.50 a week (5 days x $3.50), $70 a month (20 days x $3.50), $910 a year (52 weeks x $17.50).Saunders Learning Group, LLC, Andover, KS
  7. 7. Maximizing Your Income  Reducing variable expenses  Workforce and personal development o Explore a trade o Return to schoolSaunders Learning Group, LLC, Andover, KS
  8. 8. Managing Debt Effectively  How Much Debt Is Too Much?  Using Credit Cards Wisely o Shop around for the lowest rate. o Use only one or two cards. o Pay bills as soon as they arrive. o Always pay more than the minimum balance due.Saunders Learning Group, LLC, Andover, KS
  9. 9. The Top Ten Signs You Have Too Much DebtAlthough a limited amount of debt isn’t necessarily a bad thing, excessive debt can preventyou from achieving your long-term financial goals. Here are ten signs that your have too muchdebt:2.More than 20 percent of your income goes toward paying off car loans, credit card debt, orother kinds of bills.3.You have to borrow money each month to pay off your debts.4.You don’t know how much money you owe.5.You pay only the minimum amount on each bill.6.You pay your bills late each month, and sometimes even miss payments.7.Creditors have to call you to get you to pay your bills.8.Businesses refuse to give you credit.9.You have taken money from retirement accounts and/or have used credit cards to paynormal monthly bills.10.You write post-dated checks.11.You have to take an extra job in order to keep up with your bills. Saunders Learning Group, LLC, Andover, KS
  10. 10. Ten Quick Ways to Start Getting Out of DebtDebt can make you feel like you’re living at the bottom of a deep well. But there are several ways to pullyourself up and out into the daylight of financial security. The following steps can help you get started:2.Start Today - Because interest on debt compounds over time, there’s no time to get started like the present.3.Cut your expenses so that you can use more of your money to pay off your debts.4.Work with a credit counselor to set up a debt-reduction plan.5.Send any extra cash toward the creditor who is charging you the highest interest.6.Consolidate your loans by shifting higher-interest loans to a single lower rate loan7. Limit yourself to one or two credit cards. 1. Pay off other cards you, cancel other your accounts, and cut up those cards. 2. Keep the final one or two cards in a safe place at home, where you won’t be tempted to use them for frivolous occasions. 3. Call the card companies and have the credit limit lowered on those last cards to prevent you from running up too much debt on them. 4. (To make sure that no other card offers come your way, you can call 1-888-5OPT-OUT.)8.Earn the most money you can. Perhaps take a second job or work overtime to increase your monthly income.9.Sell or trade items that you own yet never use. .10.When you pay off one debt, add that amount to the next biggest bill to begin to pay off the remaining billsfaster (This is known as the snowball effect).11.Be honest with yourself. If you purchased a car and having trouble making monthly payments, you may bebetter off selling the car and paying off your loan than letting a creditor repossess the car Saunders Learning Group, LLC, Andover, KS
  11. 11. the art of budgeting 04/09Saunders Learning Group, LLC, Andover, KS
  12. 12. the budgeting processphase 1: Assess your personal and financial situation (needs, values, life situation).phase 2: Set personal and financial goals.phase 3: Create a budget for fixed and variable expenses based on projected income.phase 4: Monitor current spending (saving, investing) patterns.phase 5: Compare your budget to what you have actually spent.phase 6: Review financial progress and revise budgeted amounts.Saunders Learning Group, LLC, Andover, KS
  13. 13. goal-setting guidelines well-written personal and financial goals SHOULD:  be realistic I you are working part-time is not likely to be able to afford a new car every couple of years.  be specific “I want to save $5,000 for a down payment to buy a house.”  have a timeframe “I want to pay off my credit card within the next 18 months.”  state the action to be taken “I want to start an automatic deposit savings account with monthly withdrawals from my checking account.”Saunders Learning Group, LLC, Andover, KS
  14. 14. setting up and maintaining a budget income budget actual difference Job #1 $ $ $ Job #1 $ $ $ Other $ $ $ total monthly $ $ $ income expenses budget actual difference fixed regular expenses Rent $ $ $ Car insurance $ $ $ Car payment $ $ $ Credit card $ $ $ fixed irregular expenses Savings $ $ $ Food $ $ $ Utilities $ $ $Saunders Learning Group, LLC, Andover, KS
  15. 15. setting up and maintaining a budget(continued) expenses budget actual difference transportation Bus fare $ $ $ Gas and oil $ $ $ Parking and tolls $ $ $ Repairs $ $ $ other Medical expenses $ $ $ Clothing $ $ $ Entertainment $ $ $ Household items $ $ $ Personal items $ $ $ Tuition $ $ $ School expenses $ $ $ total monthly $ $ $ expenses Saunders Learning Group, LLC, Andover, KS
  16. 16. Thinking About Tomorrow  Start saving  Create an emergency fun  Plan with Short, medium, and long-term goalsSaunders Learning Group, LLC, Andover, KS
  17. 17. Review  Create a spending plan  Plug the spending leaks  Maximize your income  Focus on your financial goals  Create a budget that allows you reach your goalsSaunders Learning Group, LLC, Andover, KS
  18. 18. QuestionsSaunders Learning Group, LLC, Andover, KS
  19. 19. Post Workshop Action Plan  Complete the Post Workshop Action PlanSaunders Learning Group, LLC, Andover, KS 19
  20. 20. About the Presenter  Floyd Saunders has worked on Wall Street with both Bank of America and JPMorgan, where is was a vice president in global financial systems. He has worked across the industry in retail, commercial, and investment banking.  He has taught courses in Money and Banking, Principles of Banking, Managerial Finance and extensively for the American Institute of Banking and various colleges.  As a consultant, he developed and taught a wide range of banking and investing courses.  He authored three programs for the American Bankers Association: Banking on Mutual Funds and Annuities, Introduction to Securities Markets and Investing in Securities.  He is the author of “Figuring Out Wall Street, a consumer’s guide to financial makets”  Look for his next book, “Family Financial Freedom” available as an e-book soon.Saunders Learning Group, LLC, Andover, KS

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