Kaneil A. Murray will present on money management principles and tips. Some key principles include living below your means by creating a spending plan, investing in your education, and setting SMART goals. Ten tips are provided, such as taking advantage of compound interest over time, distinguishing needs from wants, avoiding fees, developing good financial habits, and treating personal finance like a game. The presentation will help attendees better understand concepts like what money is and how to grow wealth over time.

1. Kaneil A. Murray, MSc.
K&H Accounting & Consultancy Services

2. I can’t promise to answer all of them but by
knowing your questions before we start I can
adjust my presentation
What are Your $ Questions?

4. Money Management Principles
• Are timeless and time-tested
• Apply to everyone
• Work well in up & down economies
• Help people grow wealthy over time
• Need to be taught in school

5. Money is an object or record that is
generally accepted as payment for
goods or services or the repayment
of debt in a given socio-economic
context.
What is money?

7. Go For The Goal
• Goals provide a “why” for saving
• Use goals to develop action plans
• Break goals into benchmarks
• Make your goals SMART
– Specific
– Measurable
– Attainable
– Realistic
– Time-Related

8. Invest in Your Human Capital
• Get a solid education
– For career satisfaction
– For better health
– For higher lifetime earnings
• It’s OK to borrow for education
– There is an opportunity cost to taking too long to earn
degree
– Student loans are better than credit cards

9. Live Below Your Means
• Spend less than you earn
• Create a spending plan
– Income = Fixed Exp (including savings) + Flexible
Exp + 1/12 of Occasional Expense
• Distinguish needs from wants
• “Step-down principle”
• Automate savings so money isn’t spent

10. 10 Money Management Tips
#1: Time is your ally
• Take advantage of the time value of money. A
twenty-year-old who invests $4.25/day over
fifty years at an 8% average annual investment
return can be a millionaire. At age 30, the
required amount rises to $300/month.
Whatever age you are, start now! Let
compounding help you.

11. 10 Money Management Tips Cont’d
#2: Avoid “bad” debt. Use “good” debt
sparingly
• A reasonably-sized mortgage and student
loans may qualify as “good” debt. Everything
else is generally “bad” debt. Be savvy about
your borrowing and strive to “pay as you go.”

12. 10 Money Management Tips Cont’d
#3: Distinguish between wants and needs
• The things you “need” to survive are limited.
To shrink expenses, scrutinize your “want” list.
Avoid the binge-dieter syndrome where you
starve yourself by not buying and then go
crazy with the credit cards because you’ve
denied yourself for so long. If something adds
value, buy it if the budget allows.

13. 10 Money Management Tips Cont’d
#4: Never pay full retail
• You can usually get the things you want at a
price much less than the first one you see.
Shaving a little bit off the many purchases you
make adds up to serious money at the end of
the month.

14. 10 Money Management Tips Cont’d
#5: Pay attention to fees
• Be aware of the consequences of multiple
transactions where little bits of cash are being
unnecessarily siphoned off because you
haven’t been paying attention.

15. 10 Money Management Tips Cont’d
#6: Develop good financial habits
• Financial success depends on identifying your
good and bad habits. Systematically root out
the unhelpful habits and replace them with
something that moves you closer to success.

16. 10 Money Management Tips Cont’d
#7: Understand your risk tolerance
• Assess your tolerance for investment risk to
avoid being shocked by a possible adverse
outcome. Take only the risks you are
comfortable taking. However, be aware that
your ability to accumulate substantial assets
over a lifetime is greatly affected by your
savings and investment choices.

17. 10 Money Management Tips Cont’d
#8: Continuously educate yourself
• Read every financial periodical, book and blog
you can find from well-regarded authors. Get
to know smart, honest people who are
passionate about personal finance. You will
learn a lot.

18. 10 Money Management Tips Cont’d
• #9: Know the role money plays in your life
• What does money mean to you? How does it
fit into the dreams and goals you have for
your life? Thinking about these topics
proactively will enable you to frame your
philosophy about money, how you want to
accumulate it, and how you want to spend it.

19. 10 Money Management Tips Cont’d
#10: Treat it as a game!
• Make it fun. Don’t be a spectator oblivious to
what’s going on around you. Every
establishment that takes your money is
playing the game with you, whether you like it
or not. Think back to when you first learned a
game that you’re now passionate about. What
kind of practice did you need to do to get
good at it? What did it feel like to win?