Title: Default Prevention Workshop 2001
1Title Page 60 point type Title 44 pt., Bullet
32 pt., dash 30 pt. Title Box1.08h/1.08v Text
Box 1.08h/2.17v Top footnote 1.42h/0.50v Top
Bottom footnote 16 pt. type
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2- Achieving Your
- Financial Goals
3Achieving Your Financial Goals
- Identify financial goals
- Develop a budget
- Establish a savings plan
- Achieve your financial goals
4Identify Financial Goals
- Buy a car
- Take a vacation
- Buy a house
- Retire comfortably
- Pay off student loans
5Identify Financial Goals
- First Step to Financial Goals
- Invest in yourself
- Feature Improved education/better job
- Benefit More income/enjoyable job
6Develop a Plan
Average Expenses Source Consumer Expenditure
Survey, 1998-99, Bureau of Labor
Statistics Average Salary Source JobTrack.com
7Develop a Plan
- Where money goes
- Track each expense
- Visit www.edwise.org
- Write out a budget
- Stick to it
- Adopt a thrifty lifestyle
R01
8Develop a Plan
- Education costs
- Tuition and fees
- Books and supplies
- Travel/airfare
- Computer and software
9Develop a Plan
- Dont forget to include
- Commute expenses
- Work clothes and dry cleaning
- Health insurance taxes
- Student loans
- Savings
10Develop a Plan
- Use grocery list
- Dont shop when hungry
- Clip coupons and buy bulk foods
- Combine errands
- Bring lunch to work a few times a week
- Leave credit cards at home
- Estimated monthly savings 50
11Develop a Plan
- Shop at consignment/thrift stores
- Use economy car or public transportation
- Eat only one meal out each week
- Cancel cable TV or cell phone service
- Rent a video vs. going to the movies
- Lower winter thermostat - raise in summer
- Estimated monthly savings 250
12Develop a Plan
- Eat out only once a month
- Use public transportation often
- Cancel cable TV, cell phone, Internet
- Visit the library vs. bookstore
- Share living costs with a roommate or two
- Read books on ways to be thrifty
- Estimated monthly savings 500
13Establish a Savings Plan
- Todays habits pay off tomorrow
- Start saving today
- Sign up for employers retirement plan
- Include savings in budget
14Establish a Savings Plan
R02-R03
15Establish a Savings Plan
Power of Compound Interest
- Student A
- Age 25
- 100/month
- 8 years
- Contributes 9,600
- 48,899 at age 55
- Student B
- Age 40
- 100/month
- 16 years
- Contributes 19,200
- 32,270 at age 55
Savings growth calculated at 6 interest.
16Establish a Savings Plan
- Power of Compound Interest
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Savings growth calculated at 6 interest.
17Establish a Savings Plan
- 50 a month
- 8,235 in 10 years
- 250 a month
- 41,175 in 10 years
- 500 a month
- 82,349 in 10 years
Savings growth calculated at 6 interest.
18Achieve Your Financial Goals
- 8,235 buys a nice vacation
- 41,175 buys a car
- 82,349 is a
- Down payment on a home
- Starting a retirement
- Saving also helps pay off your student loans
19Achieve Your Financial Goals
- 15,000 student loan
- 10-year term
- 8.25 interest rate
- Monthly payment is 184
- Total interest paid is 7,077
20Achieve Your Financial Goals
- An extra 50 a month
- 3 years fastersaves 2,231 in interest
- An extra 250 a month
- 6 years fastersaves 4,892 in interest
- An extra 500 a month
- 8 years fastersaves 5,762 in interest
21Achieve Your Financial Goals
- Identify financial goals
- Track expenses and list your debts
- Create a financial plan
- Save in ways that fit your lifestyle
- Start a savings planand stick to it!
- Pay off debt
22Achieving Your Financial Goals