Getting fiscally fit

2016 | The Society for Financial Awareness 1
Getting Fiscally Fit

Thank You for joining us!
WE WOULD LIKE TO
WELCOME YOU TO
TODAY’S WORKSHOP
Our hope today is to provide you with some
valuable information, have some fun, and
enjoy this next hour.

Please review this
form. I will be
picking these up
at the end of the
workshop.
Do note – the
backside is to be
used for your
specific questions
and issues.

2016 | The Society for Financial Awareness 42016 | The Society for Financial Awareness
Goals require time and
commitment. Don’t
procrastinate, take control!
Planning can be confusing, but
proper planning gives you the
blueprint to being “fiscally fit”.
A good plan involved matching
your needs and wants both
today and in the future with the
resources you have and will
have available.
WHEN WILL YOUR FINANCIAL
JOURNEY BEGIN?

GETTING FISCALLY FIT
CHALLENGES
GAINING
CONTROL
INCREASING
CASH FLOW
BUILDING AN
EMERGENCY
FUND
PLANNING FOR
TOMORROW

Detour
Yield
One
Way
Wrong
Way
Do Not
Enter
2016 | The Society for Financial Awareness
Being Fiscally Fit is following a
set of behaviors that will help
lead you to Financial
Independence.
Adjust the way you think and talk
to yourself about determining
your financial place in life.
Commit to replace your old
habits with successful habits.
Nothing will change until you do!
OVERCOMING OUR CHALLENGES

UNDERSTANDING CHALLENGES
Working into
retirement
Longer life
expectancy
A new Standard
of Living
The impact of
inflation
Social Security
is not adequate
for retirement
Personal savings
is insufficient
Median income
is down

COMMON
CHALLENGES:
DEBT
In 2016, outstanding credit card
debt was $747 billion. See the
recent history of outstanding
debt in the U.S. to the right --->
Student loan debt stands at
$1.28 trillion as of 2016.
2016 | The Society for Financial Awareness
$580 billion
$730 billion $747 billion
2000 2010 2016
Source - www.federalreserve.gov

THE HIGH COST OF CREDIT
$2,994
$6,742
$0
$2,000
$4,000
$6,000
$8,000
$10,000
16% 29%
Principal Interest
$212,931
$326,063
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
5% 7%
This credit card example assumes an individual carrying a $2,000 balance making only minimum monthly payments on their account(s) –
approximately 2.5 to 3% of their balance. The mortgage example is based on a $200,000 mortgage loan with a 30 year repayment term. These
hypothetical examples are for illustrative purposes only.
$2,000
Credit Card Balance
$200,0000
Mortgage

GETTING OUT OF DEBT
Debt Snowball
Method
Modified Snowball
Method
Credit Counseling

How do you get there?
X Y
Where are you today? Where do you want to go?
Develop a Budget Examine your
Income vs. Expenses
Can I afford my lifestyle?
Do I need to increase my
income?
What can I live without?
Ask yourself some
hard questions:
?
GAINING CONTROL THROUGH
BUDGETING

What can you do to generate
more income?
What skills do you have that can
help you generate revenue?
Remember – raising income is
wonderful, but it’s much more
effective to cut expenses today
than it is to wait for a more
comfortable time to begin
working on your cash flow.
CASH FLOW MANAGEMENT

BUILDING AN EMERGENCY FUND
Set aside at least 3-6 months
worth of expenses to help cope
with life's emergencies.
Plan for life’s unexpected
emergencies by setting up an
Emergency Savings fund.
Emergencies can happen to
anyone, anytime!
Seek conservative savings
vehicles that keep pace with
inflation.

A rule stating that in order to
find the number of years
required to double your money
at a given interest rate.
For example, if you want to
know how long it will take to
double your money at 8%
interest, divide 8 into 72 and
you get nine years.
THE RULE OF 72

BUILDING FOR YOUR FUTURE
Stocks Pensions and
qualified plans
- 401(k)
Individual
Retirement
Accounts (IRA)
Mutual fundsBonds

TIME – NOT TIMING
This hypothetical example assumes annual $3,000 IRA contributions are made on January 1 each year beginning at the specified age and
continuing until age 70. Assumes annual rate of return of 8%. Assumes annual tax-deferred compounding in an IRA. Final account balances are prior
to any distributions and taxes will be due upon distribution.
This hypothetical example is for illustrative purposes only and does not represent the performance of any security.
Withdrawals from an IRA prior to age 591/2 are subject to a 10% IRS penalty and ordinary income taxes.
$2,010,977
$909,731
$399,641
$1,859,015
$839,343
$367,038
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
20 vs. 21 30 vs. 31 40 vs. 41

When was the last time you made a budget?
Do you have a debt repayment strategy?
How much are you putting into savings?
How much is in your emergency fund?
Have you talked to a financial planner?
GETTING TO
THE NEXT
LEVEL

You, and you alone must be responsible
for your own Fiscal Fitness!
WHEN WILL YOUR FINANCIAL
JOURNEY BEGIN?

Please take a
moment to
complete. I will be
collecting these in
a moment.
If you need a pen,
please let me
know.

Thank you for your time!
Please complete your Program Evaluation.
We will be picking them up shortly.
Now would be a good time for me to answer any particular
questions you may have.

Getting fiscally fit

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