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10 Smart Money Moves


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10 Smart Money Moves

  1. 1. 10 Smart Money Moves Department of Financial Institutions ( )
  2. 2. Jeremy Lushene [email_address]
  3. 3. Move 1: Create A Financial Plan
  4. 4. Think… Where Do You Want Your Money To Go? <ul><li>Retirement? </li></ul><ul><li>Down Payment For A House? </li></ul><ul><li>School? </li></ul><ul><li>Porsche 911? </li></ul>
  5. 5. Now Set Those Goals <ul><li>Short Term – An iPhone 4 </li></ul><ul><li>Medium-Term – Cruise To Mexico </li></ul><ul><li>Long-Term – Down Payment For A Home </li></ul>
  6. 6. SMART Goals Only <ul><li>S pecific – I want to take a cruise this February </li></ul><ul><li>M easurable – I need $1500 for the cruise. </li></ul><ul><li>A ttainabl e – I will put aside $300 a month </li></ul><ul><li>R ealistic – I can save $150 a month by cutting Cable TV and Internet and another $50 a month by not eating out. </li></ul><ul><li>T ime-Bound – I will save $1500 in 5 months </li></ul>
  7. 7. So, How Do You Start? <ul><li>The Dirty B Word… BUDGET! Free Budget Tool At </li></ul>
  8. 8. Move 2: Choose The Right Products
  9. 9. Think About This… <ul><li>Most of us spend hours researching when we buy a new car. </li></ul><ul><li>We read reviews </li></ul><ul><li>We think about our situations (kids, gas mileage, etc) </li></ul><ul><li>We shop around for a good deal </li></ul><ul><li>Yet, many of us don’t do this with our finances? </li></ul>
  10. 10. Research Products <ul><li>Does the financial product fit your need/goal? </li></ul><ul><li>Are you getting the most bang for your buck? </li></ul><ul><li>Are there similar products? </li></ul><ul><li>What are the risks/rewards? </li></ul><ul><li>Investment? Is the product registered? </li></ul>
  11. 11. How to Research <ul><li>Savings Vehicles Call around for rates or terms that suit your needs or visit websites like </li></ul><ul><li>Investments Read prospectus. Review rating websites such as and check with DFI to see if investment is and person selling is registered . </li></ul><ul><li>Mortgages Attend a free Washington Homebuyer class Check rates and forecasts with the Mortgage Bankers Association </li></ul>
  12. 12. Who Can Help <ul><li>Certified Financial Planners ( ) </li></ul><ul><li>Investment Advisers (Check license/background with DFI) </li></ul><ul><li>Certified Public Accountants ( http:// ) </li></ul><ul><li>Your Local Bank or Credit Union </li></ul>
  13. 13. Move 3: Save For A Rainy Day
  14. 14. Emergency Savings <ul><li>Needs To Cover 3-6 Months </li></ul><ul><li>Recession? 6-12 Months </li></ul>
  15. 15. How Much Do I Need? <ul><li>Role-Play (Job Loss, For 6 Months) </li></ul><ul><li>How Much Do You Need For: </li></ul><ul><li>Bills </li></ul><ul><li>Loans </li></ul><ul><li>Food </li></ul><ul><li>Things like toothpaste, and toilet paper </li></ul>
  16. 16. Where To Store Emergency Money <ul><li>Liquid Account Account you can access easily </li></ul><ul><li>Options: </li></ul><ul><li>Savings Account </li></ul><ul><li>Money Market Account </li></ul><ul><li>Talk To Your Bank Or Credit Union </li></ul>
  17. 17. Move 4: Check Backgrounds Of Financial Professionals
  18. 18. Who To Check With <ul><li>Financial Professionals Investments, Mortgage Brokers, Payday Lenders, Lending Companies, Money Transmitters Department of Financial Institutions </li></ul><ul><ul><li> or 1-877 RING DFI </li></ul></ul><ul><li>Other Companies Ask and see if they are registered with the BBB or are a registered business. Research to see if they need to be licensed to do business in the state. Better Business Bureau </li></ul>
  19. 19. Move 5: Use Credit Wisely
  20. 20. Who Looks At Your Credit These Days? <ul><li>Future employers </li></ul><ul><li>Insurance companies </li></ul><ul><li>Cell phone companies </li></ul><ul><li>Lenders </li></ul><ul><li>Other credit card companies </li></ul><ul><li>Landlords </li></ul>
  21. 21. Who Stores Your Credit Information? 3 Major Credit Bureaus Monitor You 1) TransUnion 2) Equifax 3) Experian
  22. 22. FICO Scores Developed By Fair Isaac Corporation Used By Majority Of Lenders Score For Each Of 3 Credit Bureaus 750-850 Excellent 700-749 Very good 650-699 Good credit 600-650 Fair 550-600 Poor
  23. 23. How You’re Scored Payment History 35% Amounts Owed 30% Types Of Credit 10% New Credit 10% Length Of History 15%
  24. 24. Avoiding Credit Trouble <ul><li>Pay Your Bills On Time </li></ul><ul><li>Pay Down Debt (Remember 30%) </li></ul><ul><li>Use Credit Wisely & Lightly </li></ul><ul><li>Check Credit Report For Errors </li></ul><ul><li>Monitor Your Score </li></ul>
  25. 25. Move 6: Review Important Financial Documents
  26. 26. Your To Do List <ul><li>Check Account Statements (1 x month) </li></ul><ul><ul><li>-- Look for inaccuracies, fraudulent charges </li></ul></ul><ul><li>Check Credit Card Statements (1x month) -- Look for inaccuracies, fraudulent charges </li></ul><ul><li>Review Loan Statements (1x month) -- Look for any changes to loan terms </li></ul>
  27. 27. To Do List Continued… <ul><li>Check Your Free Credit Report (3 x year) </li></ul><ul><ul><li>-- </li></ul></ul><ul><ul><li>-- Look for inaccuracies, report errors immediately </li></ul></ul><ul><li>Check Investment Statements </li></ul><ul><ul><li>-- Don’t freak out! </li></ul></ul><ul><li>Review Financial Goals & Plan (1 x year) </li></ul><ul><ul><li>-- Adjust allocations as necessary </li></ul></ul>
  28. 28. Move 7: Protect Your Finances and Identity
  29. 29. 1 In 5 Washington Residents Victim Of ID Theft In Past 5 Years Identity Theft 911 Report, 2007
  30. 30. Tactics ID Thieves Use <ul><li>Dumpster Diving </li></ul><ul><li>Old Fashion Theft </li></ul><ul><li>Technology/Hacking/Skimming/Phishing </li></ul><ul><li>Pre-Texting </li></ul><ul><li>Smishing </li></ul><ul><li>Wireless Hacking </li></ul>
  31. 31. How To Protect Yourself <ul><li>Cross Cut Shred Documents With Your Info </li></ul><ul><li>Stop Junk Mail – Opt Out Of Credit Offers </li></ul><ul><ul><li> </li></ul></ul><ul><li>Register For The Do Not Call List </li></ul><ul><ul><li> </li></ul></ul><ul><li>Lock Up Important Documents </li></ul><ul><li>Check Account Statements and Credit Report for fraudulent charges </li></ul>
  32. 32. Warning Signs You’re A Victim Denied Credit Unexpected Bill Bills Stop Arriving Fraudulent Charges Credit Cards Show Up
  33. 33. Move 8: Stay Up To Speed On Latest Scams
  34. 34. The Latest Scams <ul><li>Employment Scams </li></ul><ul><ul><li>Protect Your SSN, Don’t Pay To Work </li></ul></ul><ul><li>Foreclosure Rescue Scams </li></ul><ul><ul><li>Beware Of Too Good To Be True Offers </li></ul></ul><ul><li>Credit Card Authorization Scams </li></ul><ul><ul><li>Call Your Bank Directly If Someone Calls Asking For Information </li></ul></ul><ul><li>Facebook/Social Media Scams </li></ul><ul><ul><li>If A Friend Is Trapped Overseas, Hopefully They’ll Call </li></ul></ul>
  35. 35. More Information On Scams <ul><li>DFI – </li></ul><ul><li>Attorney General’s Office - </li></ul><ul><li>Federal Trade Commission- </li></ul><ul><li>OnGuardOnline - </li></ul><ul><li>Better Business Bureau - </li></ul><ul><li>Local News </li></ul>
  36. 36. Move 9: Take Advantage Of Free Resources
  37. 37. Free Resources <ul><li>1) DFI’s Publications and Blog </li></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul><ul><li>2) Financial Education Clearinghouse /financial-education </li></ul><ul><li>3) Local Money Management Class Calendar </li></ul><ul><ul><li> </li></ul></ul><ul><li>4) MyMoney.Gov </li></ul>
  38. 38. Move 10: Know Where To Get Help
  39. 39. Help <ul><li>Complaint? DFI or Attorney General’s Office http:// or http:// </li></ul><ul><li>Identity Theft Attorney General’s Office or Your Local Bank/Credit Union </li></ul><ul><li>Foreclosure – Free Counseling </li></ul><ul><li>Credit Help National Foundation for Credit Counseling </li></ul>
  40. 40. More Help <ul><li>General Consumer Issues Federal Trade Commission or Attorney General http:// or http:// </li></ul><ul><li>Banks or Credit Unions DFI http:// </li></ul><ul><li>Investment Brokers DFI http:// </li></ul>
  41. 41. Questions? Jeremy Lushene [email_address] (360) 902-0506