A ROAD MAP TO YOUR FINANCIAL FUTURE

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A ROAD MAP TO YOUR FINANCIAL FUTURE
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• Diane Sarber
• Chief, Financial Readiness
• Army Community Service

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You Might Want to Use A Financial Road Map If.

• You never met a credit card you didnt like
• You buy on impulse or spend when you are lonely
  or depressed
• Your retirement plan is to work until you die
• You run out of money before you run out of week
• You dont know how much you owe and you dont
  care
• You dont know what lies ahead in your career
• You know more about lifetime movies than money
  management

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Destination Financial Stability

• Develop net worth statement
• Establish short and long term goals
• Construct a financial plan for spending,
  spending, saving, and investing

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Financial Grid Coordinates

• Net worth statement or balance sheet
• - All sources of income
• - Liabilities or debts
• Spending plan or budget
• - Keep it real
• Spending diary
• Review credit report at least annually

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Spending Plan

• Save (pay yourself first)
• Realistic lifestyle expectations
• Needs vs wants
• Control living expenses
• Reduce or eliminate debts
• Invest for the future

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Goals

• Write them down!
• Be specific
• Be realistic
• Determine the cost
• Identify a time frame
• Short term less than five years
• Long term (retirement, childrens education, home
  purchase)

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Road Sign

• Only two ways to change a negative bottom line to
  a positive one
• Decrease debt
• Increase income

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Improving Road Conditions

• Establish regular savings plan
• Maintain adequate insurance
• Smart shopping
• Consumer awareness
• Service Members Civil Relief Act
• Power payments to reduce debt

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Road Conditions Green

• Adequate emergency savings
• Consider Thrift Savings Plan
• Increase investment knowledge or
• select a professional financial advisor

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Road Hazards

• Inadequate income
• Unexpected expenses
• Poor recordkeeping
• Impulse or emotional spending

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Detours

• Excessive credit card debt
• Minimum payments
• Late or missed payments
• Bounced checks

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Roadblocks

• Predatory Lending
• - Payday loans
• - Car title loans
• - Tax refund loans
• Inappropriate investments
• Too much or too little insurance
• Frauds and scams
• Gambling, substance abuse
• Bankruptcy

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Alternate Routes

• Financial counselors at Army Community Service
  www.gordon.army.mil/acs
• Military One Source
• Installation banks and credit unions
• Army Emergency Relief
• Nonprofit consumer credit counseling agencies
• State sponsored grants