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Taking Charge, Chapter 3.1: Financing Your Life

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Taking Charge, Chapter 3.1: Financing Your Life

  1. 1. Handling Your Money Wisely Section 3.1: Financing Your Life Taking Charge : Chapter 3
  2. 2. Know Your Current Habits <ul><li>Write down each expense as you spend your money </li></ul><ul><li>Write out a personal net worth statement </li></ul><ul><li>Apply SMART to your financial situation </li></ul>
  3. 3. Financial Goals <ul><li>Write out your financial goals </li></ul><ul><ul><li>Where your money needs to go </li></ul></ul><ul><ul><li>What you would like to put your money toward </li></ul></ul><ul><li>Reevaluate your net worth and financial goals annually </li></ul>
  4. 4. Budgeting Basics <ul><li>Fixed expenses </li></ul><ul><ul><li>Bills, debts </li></ul></ul><ul><li>Variable expenses </li></ul><ul><ul><li>Household items, groceries </li></ul></ul><ul><li>Discretionary expenses </li></ul><ul><ul><li>Movies, restaurants, CDs </li></ul></ul>
  5. 5. Saving for a Rainy Day <ul><li>Save at least 10% of income </li></ul><ul><li>Save your spare change in a jar </li></ul><ul><li>Open a savings account </li></ul>
  6. 6. Stretching Your Dollar <ul><li>Be creative </li></ul><ul><li>Clip coupons </li></ul><ul><li>Buy used books </li></ul><ul><li>Take advantage of free online downloads and shareware offers </li></ul><ul><li>Watch the bulletin boards at school </li></ul>
  7. 7. Handling Credit <ul><li>A credit card is not free money </li></ul><ul><li>Pay in full monthly to avoid finance charges </li></ul><ul><li>Pay attention to interest rates and annual fees </li></ul><ul><li>Limit the number of cards you have </li></ul>
  8. 8. Protecting Your Identity <ul><li>Never keep your Social Security card in your wallet </li></ul><ul><li>Buy a shredder and shred all mail or unwanted documents that contain personal information </li></ul><ul><li>Don’t leave your checkbook, credit cards or mail with personal information lying around </li></ul><ul><li>Be aware of putting personal information on social networking sites </li></ul>
  9. 9. Further Reflection <ul><li>Make a personal budget: </li></ul><ul><li>How did making a budget make you feel? </li></ul><ul><li>Where does the majority of your money go? </li></ul><ul><li>Where do you want your money to go? </li></ul>
  10. 10. Additional Resources <ul><li>Mint Refreshing Money Management at www.mint.com </li></ul><ul><li>Suze Orman at www.suzeorman.com </li></ul><ul><li>The Motley Fool at www.fool.com </li></ul>

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