Sofa Getting Fiscally Fit

WHERE COMMUNITY HAPPENS
1-800-689-4851
www.sofausa.org
membership@sofausa.org
Getting Fiscally Fit
The Society for Financial Awareness

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

SOFA the organization, does not offer to sell financial
products nor promote any one particular company. Though
the presenter may mention specific financial instruments and
their functionality, SOFA’s role is only to educate and inspire.
SOFA only represents the educational workshop – all other
endorsements are non-SOFA related.

Nationwide Non-Profit Educational Speakers Bureau
501(c)(3), Public Benefit Corporation
Been around since 1993
Mission: To end financial illiteracy across America,
one community at a time.

EVALUATION
FORM
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.

Goals require time
& commitment.
Don’t Procrastinate!
Take Control!
Planning can be
confusing. Seek
Professional help.
There are many
aspects to getting
Fiscally Fit.
WhenWillYour Financial
Journey Begin?

A Creative Building of Security
Against possible loss in all areas or your life.
Having enough money to preserve
your lifestyle after employment ROI=Reliability of Income
Diversification, Asset Allocation,
Mitigating Potential losses.
Due every year. More you make, the more you pay.
Do “Planning” as well as Preparation.
Leaving your assets and directives to your loved ones.
Possible philanthropy
Protection
Retirement
Investing
Taxes
Estate Planning
Cash Management OUR FOUNDATION - We manage it, or it manages us!

Getting Fiscally Fit
Overcoming our Challenges
Planning for
Tomorrow
Following
the Plan
Building an
Emergency Fund
Increasing
Cash Flow
Reducing Taxes

• Being Fiscally Fit is following a specific behavior
that will help lead you to Financial Independence.
• Adjust the way you think and commit to yourself
to determining your Financial place in life.
• Focus on replacing your old habits with successful one’s.
• Nothing will change until you do! Make it happen!
Overcoming Our Challenges

• Working into Retirement
• Longer Life Expectancy
• A New Standard of Living…usually less
• The impact of Inflation and Taxation
• Social Security is not adequate for Retirement
• Personal Savings is usually insufficient for most
• Median Income is trending down (inflation)
Understanding Challenges

Non-Housing Debt In the United States

The High Cost of Credit
$2,000 Credit Card Balance $200,000 Mortgage
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.
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
16% 29%
$2,994
$6,742
Principal Interest
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
5% 7%
Principal Interest
$412,931
$526,063

•Debt Snowball Method
•Modified Snowball Method
•Credit Counseling
Getting Out of Debt

• Develop a Budget
• Examine your
Income vs. Expenses
• Ask yourself some hard questions:
Can I afford my lifestyle?
Do I need to increase
my Income?
What can I live without?
Is what I’m Buying,
nice or necessary?
Gaining ControlThrough Budgeting
Where are
you today?
Where do you
want to go?
How do you get there?
X Y

What can you do to
generate more Income?
What skills do you
have that can help you
generate more Revenue?
Cash Flow Management

• Inflation – Spending more dollars for the same item/service
• Taxes – Do you only do Tax “Preparation,” after the fact?
Try Tax “Planning” mid-year to KNOW what is needed.
Tax Refunds are simply the return of your own money,
with ZERO interest earned!
The 2 Hidden “Takeaway’s”

Emergencies can
happen to anyone,
anytime!
Building an Emergency Fund
Plan for life’s unexpected
Emergencies by setting
up an Emergency
Savings fund.
Set aside at least
3-6 months worth of
expenses to help cope
with life’s Emergencies.
Seek conservative
Savings vehicles.
Car
Family
Home

A rule stating that
in order to find the
number of years
required to double
your money at a
given interest rate.
The Rule of 72
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 9 years.

Building forYour Future
Investors
Return
Fund
Securities
401K
IRA

Time – NotTiming
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
20 vs. 21 30 vs. 31 40 vs. 41
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
1,859,015
$909,731
$839,343
$399,641 $367,038

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

It’s UpToYou!
You, and you alone are responsible
for the Financial choices you make,
which always determine your
Fiscal Fitness!

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

WHERE COMMUNITY HAPPENS
1-800-689-4851
www.sofausa.org
membership@sofausa.org
Thank you for your time!

Sofa Getting Fiscally Fit

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