Business Life, Budgeting, Financial, Jigsaw, Insurance, Cash Flow, Debt

1. RYAN DAVID GRANT
Financial Adviser

2. General Advice
I, Ryan Grant, am an authorised representative (No. 322428) of Synchron AFS
Licence No. 243313.
Today’s presentation does not take into account any person’s particular
objectives, needs or financial situation – which makes this General Advice.
This presentation does not endorse, guarantee or indemnify any products or
software referenced, nor does it recommend anything.
Before making any financial decisions on buying or selling a financial product
you should assess whether it is appropriate to your objectives, needs or
financial situation. No responsibility is taken for anyone acting on the
information provided. If you do, it is at your own risk.
Today’s workshop is designed around building life skills that should be useful to
most people, regardless of your income level, age, or situation.
This information has been prepared by Ryan David Grant. This information was prepared as an
information service and without assuming a duty of care. It contains general information only. It
does not constitute financial advice and should not be relied upon as a substitute for financial or
professional advice. Should you be interested in obtaining financial advice please speak to the
representative who delivered this presentation.
© Ryan David Grant 2011
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3. Is there a secret to financial success?
• Why do some people seem to prosper?
• Ever wondered if there is some secret
trick?
CONTROL
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4. What we cover tonight
• What is Control?
• Understanding cash flow
• Breaking the cycle of debt
• Tips to control your finances
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5. What is control?
• Being in charge of…
• Giving orders to…
• Not submitting to…
money
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6. How do we do that?
• Knowledge:
– Know where your money comes from
– Know where your money goes
– Know where your money needs to go
• First Step:
– Create a budget
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7. Budgeting
• What a budget is not:
– Static
– Lifeless
– Restrictive
– Unrealistic
– Too hard to be bothered!
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8. Budgeting
To budget well, you need
to understand your cash
flow, and how it works.
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9. Knowledge is power
• Money is essential to survive in our
society
• What else is considered essential to
survive?
Water
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10. Knowledge is power
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11. Knowledge is power
Income is your
budget’s
lifeblood…
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12. Knowledge is power
It fills your tank
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13. Knowledge is power
Then you pay
your bills,
drawing
down on the
reserves…
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14. Knowledge is power
What you need
to find now
are any other
leaks…
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15. Knowledge is power
• Knowing your cash flow
– the biggest difference
between:
people who can get ahead,
and those that can’t
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16. Budgeting
• Rules:
1. You can’t spend more than
you earn!
• You cannot take water from
an empty tank!
2. Money must go to the
budget categories as soon
as you get paid!
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17. Budgeting
Expenses > Income = Bad
Expenses < Income = Good
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18. Budgeting
• Simple Budget:
• Allocate for primary needs, all other
expenses must be met from the remainder
• Simple Budget Example:
• $1,000 income / pay on payday
• ($500) set aside for rent/mortgage etc
• $ 500 left to buy food, pay bills etc
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19. Budgeting
• Tools:
– Paper (lots of work here)
– Spreadsheets
– Programs
– Online
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20. Budgeting
• Detailed Budgeting:
1. Create an “Actual Budget (history)”
2. Design a “Planning Budget”
3. Monitor an ongoing “Comparison”
4. Adjust “Planning Budget” as required
• Finding the spending (or leaks) that
were not planned is a key part!
• Look for ways to reduce expenses
– Eg: debt payments
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21. Breaking the Debt Cycle
• Debt Snowball
– Builds up as it rolls down the debt hill...
– Make a list of your debts, all credit cards,
personal debts, car loans, and home loans
• Include the balance, and the repayment
– Start with the smallest balance, put all
extra repayments onto that loan
– Once paid off, allocate that and the extra
repayment you save, to the next loan...
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22. Breaking the Debt Cycle
• Business strategies:
– Collecting accounts in a timely fashion
– Reducing the amount of accounts
receivable
– Shorten the accounts timeframe (30 days
to 15 days)
– Make cash a preferred payment method
(maybe charge a fee for accounts)
– Proactive debt chasing
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23. Dealing with surprises
Emergency Fund:
• Provides a buffer to avoid small
surprises pushing you into debt
– Start with a small target, eg: $50 each pay,
– Take out before paying bills
– Build up to $500 over 10 pays
• Put the money into a separate account
– High Interest Online Savings account
– Make this a regular part of your budget
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24. Dealing with surprises
Insurance
• Back up plan, provides a safety net
• Transfers the financial risks
• Can be more cost effective
than building up
enough emergency
fund
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25. Dealing with surprises
Insurance
• Types of insurances:
– Renter’s or Homeowner’s Insurance
– Car insurance
– Health Insurance
– Disability Insurance
– Income Protection
– Life Insurance
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26. Dealing with surprises
Insurance
• How much is enough?
– Depends on what you are protecting, you
financial situation, and your family situation
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27. Dealing with surprises
Insurance
• Savings money on insurance
– Emergency fund ↑ Excess amount ↑
– Review regularly
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28. Building Wealth
• Saving
– Putting aside additional cash on a regular
basis
– Different from your Emergency Fund
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29. Building Wealth
• Investing
– Just like saving, but you buy different
things
– Only builds wealth if it pays you
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30. Putting the pieces together
• Budgeting
• Paying off debt
• Avoiding new debt
• Emergency Fund
• Insurance
• Building Wealth
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31. Thank you!
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