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1. The 5 Worst Mistakes You Make with Your Personal Finances How to overcome fear, uncertainty and doubt about your present and future finances

2. © Time & Money, LLC - 2010 2 Researched and produced by Sponsored by Time & Money, LLC

3. Why did Money Mastery commission a study? © Time & Money, LLC - 2010 3 Because of today’s economic conditions, many people are looking for ways to improve their financial security So, we hired an independent research company to study what is happening to families today as well as uncover strategies that will help them to succeed financially We are pleased to share this study with you!

4. Areas Covered Personal financial problems in America today Five mistakes that keep you from achieving financial security Five ways to combat those mistakes and change your financial future © Time & Money, LLC - 2010 4

5. Personal financial problems in America today © Time & Money, LLC - 2010 5

6. National household debt © Time & Money, LLC - 2010 In 1980, household debt amounted to $1.6 billion By 2009, that amount had increased to $14 billion Then in 2010, despite the recession, it only dropped by $500 million to $13.5 billion Source: Household Sector: Liabilites: Household Credit Market Debt Outstanding, Federal Reserve Bank of St. Louis, accessed August 26, 2010 6

7. Lack of financial management skills © Time & Money, LLC - 2010 A report from the Financial Crisis Inquiry Commission recently stated that the majority of Americans lack basic math skills and knowledge of fundamental economic principles Interestingly, the report also showed that those surveyed believed they had much more financial and math knowledge than the tests actually revealed Source: Americans’ Financial Capability, Report Prepared for the Financial Crisis Inquiry Commission, February 26, 2010 7

8. What’s your financial IQ? © Time & Money, LLC - 2010 8 In a recent financial IQ quiz, the average score earned by those tested was “D+” Areas of lowest scoring: Credit management Cash flow management Source: Household Financial Management: The Connection between Knowledge and Behavior, Federal Reserve Bulletin, July 2003

9. For example, how much do you know about your mortgage? © Time & Money, LLC - 2010 A mortgage is one of the most complex and important contracts into which we enter However, 4.4 million mortgage borrowers report not knowing the interest rate they are paying on their mortgage! Sources: Joint center for Housing Studies of Harvard University, 6/25/10; Americans’ Financial Capability, Report Prepared for the Financial Crisis Inquiry Commission, February 26, 2010 9

10. Lack of personal savings © Time & Money, LLC - 2010 10 In 1982, the personal savings rate was nearly 11% of disposable income In contrast, by 2005 personal savings dropped to 1.4% of disposable income Then in 2009, personal savings had inched up to only 4.3% Source: Personal Savings Up, National Savings Down, Federal Reserve Bank of Cleveland, March 19, 2010

11. Complex tax code © Time & Money, LLC - 2010 In 1913, the Federal Tax Code contained 400 pages of rules By 2010, the number of pages had increased to over 71,680 Source: Issues, Randy Hultgren for Congress, accessed August 26, 2010 11

12. The link between finances and divorce © Time & Money, LLC - 2010 Money trouble is a top reason for divorce in America, second only to abuse Couples who reported disagreeing about finances on a weekly basis were over 30% more likely to divorce than couples who reported disagreeing about finances only a few times a month Sources: Money Fights Predict Divorce Rates, The New York Times, December 7, 2009; Real Estate: Home Mortgage Crisis May Boost Divorces in U.S., Experts Say, divorce360, 2009 12

13. Are you ready to retire? © Time & Money, LLC - 2010 A study revealed that two out of three boomer households are financially unprepared for retirement The percentage of workers planning to work after they retire has increased to 72% in 2009 (up from 66% in 2007) The average 401(k) retirement account fell 24.3% in 2008 Sources: Not Ready to Retire?, Entrepreneur Magazine, March 2009; The 2009 Retirement Confidence Survey: Economy Drives Confidence to Record Lows; Many Looking to Work Longer,” EBRI Issue Brief, no. 328, April 2009; 401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2008, Investment Company Institute via Business Exchange, October 2009 13

14. What does this all mean? © Time & Money, LLC - 2010 Americans carry too much debt and have too little saved We don’t understand our debts nor do we understand the tax laws that could hurt or even help us Too many of us are allowing financial problems to ruin our marriages and credit Too few will be ready to retire and too many will need to continue working during their golden years 14

15. The 5 Worst Mistakes © Time & Money, LLC - 2010 Habitual spending and borrowing Incomplete solutions Doing it yourself Looking for a quick fix Going with the crowd 15

16. MISTAKE #1: habitual spending and borrowing © Time & Money, LLC - 2010 16

17. Getting ourselves into this mess . . . © Time & Money, LLC - 2010 17 Excessive spending and borrowing leads to living paycheck to paycheck 61% of workers say they live paycheck to paycheck 20% save nothing each month 42% of workers believe if they had $500 more per month, they would live comfortably HOWEVER, 30% of those making over $100,000 say they live paycheck to paycheck Sources: More Upper-Income Workers Living Paycheck to Paycheck, CNBC, September 16, 2009; Living paycheck to paycheck, CNN, October 8, 2008

18. Living in denial © Time & Money, LLC - 2010 18 The rude reality of being so far behind on bills coupled with our inability to purchase necessities can together create denial — we continue racking up debt despite our hopeless financial predicament In a recent survey, 7 in 10 respondents found their investment statements incomplete or hard to understand Many Americans live in a constant state of financial ignorance and denial Sources: 2008-2009 Winter Issue: Dealing With Debt, Consumer Action News, January 30, 2009; Understanding Your Account Statement, investorED survey cited by The Globe and Mail, 4/16/09

19. Spending is emotional, not mathematical © Time & Money, LLC - 2010 Many people buried by credit cards and loans are in this position due to the emotional and psychological aspects of spending money, not necessarily a momentary lapse in mathematical ability So how do we then get ourselves out of this mess? Source: The Best Way to Pay Off Debt, U.S. New & World Report via Yahoo! Finance, July 28, 2010 19

20. mistake #2:incomplete solutions © Time & Money, LLC - 2010 20

21. A crash (spending) diet? © Time & Money, LLC - 2010 Poor economic conditions have prompted more people to limit their use of credit — as of June 2010, Americans had cut credit card use for 21 straight months However, spending is only one piece of the puzzle Other important aspects of the financial puzzle that are tied with how we spend are: Debt Savings/retirement Taxes Source: Credit-Card Delinquencies Slump In 2Q; Balances At 8-Year Low, The Wall Street Journal, AUGUST 25, 2010 21

22. Debt is only one aspect of one’s financial troubles © Time & Money, LLC - 2010 22 Worse yet, debt elimination programs are less successful than we may think: The current completion rate of debt management plans is roughly 20% Completion rates from debt counseling programs are as low as 21% Source: The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy, How to Get Out of Debt, June 17, 2009

23. Throw in the towel? © Time & Money, LLC - 2010 Will filing bankruptcy really solve your problem and change your behavior? Many Americans think this is the solution From 2007 to 2010, the number of personal bankruptcies more than doubled from 751,056 to over 1.5 million Source: Bankruptcy Statistics 1980-2010, BankruptcyAction.com, August 17, 2010 23

24. mistake #3:Doing it yourself © Time & Money, LLC - 2010 24

25. Making decisions on your own © Time & Money, LLC - 2010 25 Many will agree that making financial decisions today is even harder than it was in the past — today’s financial markets are far more complex Managing day-to-day finances can not only be more difficult today, but “getting it wrong” can pose greater risks than ever before Source: Americans’ Financial Capability, Report Prepared for the Financial Crisis Inquiry Commission, February 26, 2010

26. Are we financially savvy enough to go it alone? © Time & Money, LLC - 2010 26 A report recently stated that the majority of Americans today lackcriticalknowledge of important financial concepts such as: How inflation works Financial risk Investing for the future Source: Americans’ Financial Capability, Report Prepared for the Financial Crisis Inquiry Commission, February 26, 2010

27. Results of our lack of knowledge © Time & Money, LLC - 2010 The report further stated that one in five Americans have used alternative and costly borrowing methods (payday loans, advances on tax refunds, pawn shops, etc.) in the past five years Because of our lack of knowledge, too many Americans will have to work past retirement age, are overpaying taxes, paying too much interest or earning too little interest on their investments Source: Americans’ Financial Capability, Report Prepared for the Financial Crisis Inquiry Commission, February 26, 2010 27

28. Are we preparing for the future? © Time & Money, LLC - 2010 We know Social Security could run out in less than 27 years Younger generations will have to rely mostly on self-directed retirement accounts yet 58% of those surveyed have never even tried to calculate how much they should be saving to retire Source: McKinley, K. (2009, June 21). Five Social Security Questions Baby Boomers Should Ask Before They Retire. Retrieved June 23, 2009 28

29. mistake #4:Looking for a quick fix © Time & Money, LLC - 2010 29

30. Taking the easy way out © Time & Money, LLC - 2010 30 Many Americans want to pick up a book and fix their financial problems in an instant In 2008, the self-help book industry made an estimated $8 billion in the U.S. alone Source: Is Modern Self-Help Just a Massive Money-Making Scam?, PsyBlog, January 9, 2008

31. But is it working? © Time & Money, LLC - 2010 31 Despite their continuing popularity, self-help books have faced fierce criticism over the years Respected psychologists have argued that self-help books “will clearly not help people to become thin, rich and well-adjusted; indeed they probably have no effect whatsoever” How much success have you seen from a self-help resource? Source: Is Modern Self-Help Just a Massive Money-Making Scam?, PsyBlog, January 9, 2008

32. Paying someone else to make your problems go away © Time & Money, LLC - 2010 Maybe you or someone you know has paid someone to provide debt relief? Those who sign on with debt relief or debt settlement companies often end up with more debt than when they started Desperate consumers are paying thousands of dollars with no guarantee that even one penny of their debts will ever be settled Source: Be wary of promises from debt relief companies, MSNBC, July 8, 2010 32

33. mistake #5:going with the crowd © Time & Money, LLC - 2010 33

34. Whom do you ask for financial advice? © Time & Money, LLC - 2010 34 A study has shown that heads of households primarily obtain their financial knowledge from experience, friends, family and media rather than from financial experts Source: Household Financial Management: The Connection between Knowledge and Behavior, Federal Reserve Bulletin, July 2003

35. But do all advisors have YOUR best interests in mind? © Time & Money, LLC - 2010 Reports show that most people get financial advice from many different types of professionals: Real estate agents Mortgage brokers Sellers of financial products High sales quotas tend to cause providers to promote products that can exploit a consumer’s tendency to behave irrationally Source: How About a Stimulus for Financial Advice?, The New York Times, January 17, 2009 35

36. Mainstream financial gurus: are they the best choice for YOU? © Time & Money, LLC - 2010 36 Popular financial “experts” have lots of good ideas, but rarely the actual experience in the field to back those theories Usually they specialize in one area of finance but are weak in others Their expertise is generally in motivation, not education Sources: Is Dave Ramsey A “Financial Expert”, Money Smarts, June 3, 2009; Suze Orman comes out, Instant Pride, November 17, 2008

37. Compulsive spending and borrowing can be counterproductive as they are usually very emotional and habit-forming Your finances will likely not improve if you address only one part of your money problem Short-term fixes and “crash diets” rarely help Self-help books and your neighbor’s advice are generally not specific enough to help you with your unique financial predicament So what can we do to fix the problem? Bringing it all together… © Time & Money, LLC - 2010 37

38. Five Ways To Combat Your Financial Mistakes And Change Your Future Decide to change your financial cycle for good Realize this process may take time Fix the whole problem Create a solution that fits your unique needs Find the best financial program and coach for you

39. Step #1:Decide to change for good © Time & Money, LLC - 2010 39

40. Make a commitment, once and for all © Time & Money, LLC - 2010 40 Recognize that money matters are emotional Resist going with the status quo or choosing to do nothing at all Resolve that this time will be different — take action now! Source: Why Habits Are Hard to Change (And Printers Hard to Buy), Psychology Today, March 18, 2010

41. Difficult decisions require self-efficacy © Time & Money, LLC - 2010 Self-efficacy — the belief that you can make a change and overcome obstacles — is one of the best indicators of successful change What is the source of your motivation to succeed? What will give you the confidence that you will need to see you through? Source: Why Habits Are Hard to Change (And Printers Hard to Buy), Psychology Today, March 18, 2010 41

42. Step #2:Take the timeto do it right © Time & Money, LLC - 2010 42

43. Give yourself time © Time & Money, LLC - 2010 43 You can’t always go on a “crash budget” to solve your financial troubles A daily action like eating fruit at lunch or running for fifteen minutes takes an average of sixty-six days to become a solid habit Spending and saving are daily habits that take time to change and develop Source: Stop Expecting to Change Your Habit in 21 Days, Psychology Today, October 21, 2009

44. You can learn from your mistakes © Time & Money, LLC - 2010 73% of people with the highest scores on a recent cash-flow and credit management survey reported having learned better habits from personal experience Source: Household Financial Management: The Connection between Knowledge and Behavior, Federal Reserve Bulletin, July 2003 44

45. Step #3:Fix the wholeproblem © Time & Money, LLC - 2010 45

46. The big picture © Time & Money, LLC - 2010 See your finances as one large picture, not as individual pieces of a puzzle: Debt Spending Savings/retirement Taxes Understand that everything a person needs to know to be successful financially is contained within these four areas 46

47. How to put the puzzle back together © Time & Money, LLC - 2010 47 Regain control of these four areas Understand that they are interrelated Cause these areas to work together in harmony

48. Step #4:Tailor a solution for YOU © Time & Money, LLC - 2010 48

49. Is popular advice the best choice? © Time & Money, LLC - 2010 49 Financial “gurus” that market a few feel-good tools may not have the total solution YOU need Having someone personally SHOW you how to apply financial management principles specific to your needs could be the key to your success

50. How do YOU learn best? © Time & Money, LLC - 2010 50 You might also consider financial programs containing books, workbooks, CDs, DVDs, and seminars with live speakers which can reach out to various types of learners: those who learn from reading those who learn from watching those who learn from listening to speakers and asking questions Source: Some Thoughts on Personal Finance Coaching, The Simple Dollar, November 14, 2008

51. Coaching can be an effective tool © Time & Money, LLC - 2010 Many simply thrive on having someone motivate them to make better choices, such as dietitians and personal trainers In a recent study, households that had participated in just one personalized financial counseling session… Were less likely to be late with payments Had higher credit scores Had better credit management Sources: Some Thoughts on Personal Finance Coaching, The Simple Dollar, November 14, 2008; Household Financial Management: The Connection between Knowledge and Behavior, Federal Reserve Bulletin, July 2003 51

52. Case Study: A long-term coaching relationship can really pay off © Time & Money, LLC - 2010 A recent financial planning study categorized participants as either (a) self-directed, (b) advice-supported or (c) comprehensive planning participants The comprehensive planning participants engaged in an ongoing relationship with a financial planner which included a written plan encompassing at least three major aspects of their financial lives Source: Financial Planning Yields a Sense of Direction, 2008 Financial Planning Association Study, Conducted June-July 2008 52

53. Getting ahead financially Comprehensive planning participants were found to be nearly twice as likely as those in the other two categories to: Regularly save the amount needed for retirement Save at least 8% of their annual gross income Be on track to save enough for a college education either for themselves or their children Source: Financial Planning Yields a Sense of Direction, 2008 Financial Planning Association Study, Conducted June-July 2008 © Time & Money, LLC - 2010 53

54. Step #5:Find the optimal program and coach for YOU © Time & Money, LLC - 2010 54

55. Look for a financial program that . . . © Time & Money, LLC - 2010 55 Has the tools and techniques to help you to permanently change your behavior for the better Has a time-tested, well-proven program for success Uses a holistic solution Treats the root of the problem, not just the symptoms

56. The right tools © Time & Money, LLC - 2010 To leapfrog you over any learning roadblocks, consider a program with varied tools such as: Books and guides Software Audio CDs Planners and organizers Diaries and tracking tools 56

57. Time-tested program © Time & Money, LLC - 2010 57 Consider seeking out a program that is led by experienced professionals An ideal program will have an excellent track record of “helping people help themselves” out of the financial holes they are in

58. Well-balanced approach © Time & Money, LLC - 2010 Make sure the program you select addresses all aspects of finance: How to spend money How to save money How to pay off debt How to not overpay taxes And most importantly, how to do all these in the right order 58

59. Treat the root of the problem © Time & Money, LLC - 2010 59 Look for a program that is interested in helping you create good financial habits Find someone who makes you feel you can make these changes Great coaches have a way of building one’s self esteem — anyone can improve their financial outlook if they first believe in themselves Source: Debt Settlement Coaching – How To Get Free Debt Settlement Advice Online, PRLog, August 19, 2010

60. Who here feels they’ve learned a great deal today? © Time & Money, LLC - 2010 Our hope is that you learned to pay more attention to your financial health That you learned more about how to best address the whole problem That you have learned and understand the purpose and need for the correct mentor and program that can tailor a solution to your individual needs This presentation was sponsored by Time & Money, LLC, let us tell you a bit about the Money Mastery® program. We have a three-minute overview 60

61. Today’s educational insights were brought to you by: 61 © Time & Money, LLC - 2010 Time & Money, LLC

62. © Time & Money, LLC - 2010 62 The Money Mastery® system developed by Time & Money is proven to be a solution to the mistakes described in this study We would like to show you what sets us apart from the rest Real answers…solid advice

63. © Time & Money, LLC - 2010 63 Our Mission Our purpose is to educate, inspire, and motivate people to make significant changes in their lives through the application of ten proven financial principles — the Money Mastery® principles!

64. © Time & Money, LLC - 2010 64 Has the tools and techniques to permanently change your behavior Uses a holistic solution Has robust program material and plenty of support tools Treats the root of the problem, not symptoms Has a time-tested, well-proven program for success Is developed and led by true professionals Benefits of our Financial Program

65. © Time & Money, LLC - 2010 65 Testimonials “The Money Mastery program works! We pay our bills on time, contribute to our 401(k)s, have money in savings, did not borrow money to send our child to college, and all without declaring bankruptcy!” — Mike M., Utah “A few months ago, we had 14 revolving accounts and owed real estate taxes. Today, we have just four open accounts. Our debt is $65,000 less than before and $4,000 per month goes toward debt!” — Gary & Carol O., Oregon “We had no savings, no retirement, and were living check-to-check. In one year, we’ve started a 401(k), a money market account, a mutual fund, a regular savings account, and have paid off three cars and two furniture loans. Thank you!” — Ken & Barbara R., New York

66. © Time & Money, LLC - 2010 66 Our Offer Personalize yourFinancial Master Plan! Your 30-minute Master Planning Session with a Financial Literacy Coach will uncover hidden daily practices that prevent financial freedom. Tailored to your unique situation, this personal analysis will detail simple lifestyle changes you can make today for fiscal-fitness! For only $379: Discover your signature money “busters” Debrief your personal “financial IQ” assessment Learn the surprising 10 principles to financial readiness Design an easy-to-follow and FUN financial strategy Realize new perspectives on how you spend, borrow, save, and pay taxes

67. 67 Are you ready to get started? Knowing is half the battle! When reviewing your current situation with a Personal Master Plan consultant, you will find yourself in the RIGHT place to begin doing something about it… NOW! CALL NOW (888) 292-1099 Or visit www.MoneyMastery.net © Time & Money, LLC - 2010