Money: The Conversation you never had'

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(No Transcript)
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Who are we?
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Why are we here?

• We believe in the value of financial knowledge

• You are Leaders
• Good habits
• Good skills
• Desire to succeed
• Opportunity
• Knowledge

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Expectations

• An introduction to personal finance
• Be involved

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Take a Leadership role in your personal finance

• Those who do

• Those who dont

• Opportunity
• Comfort
• Security
• Freedom

• Limited Options
• Stress
• Fear
• Lack of Opportunity

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Why people dont take care of their finances

• Excuse

• Fact

• I am young, I dont need to worry about it
• I have a good job and will only make more money
• Whose to say I wont die tomorrow
• I work hard, I have earned it
• I dont make enough money to save, plan, etc

• You are young, and dealing with it now is the
  best time
• Many of us will change careers
• The average life expectancy is 82 years old
• If we dont save, we will be working forever.
• If we could be making more money, we would be

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Important Areas

• Credit
• Credit Cards
• Retirement
• Savings
• Planning
• Budget

We need to plan for all of these!
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Budgeting

• What do you think of when I say budget?

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What Is a Budget
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Why Is A Budget Important

• Helps you achieve your goals
• Helps you stay in control
• Helps you stay motivated
• Personal benefits
• Marriage
• Family

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Expectations

• It may seem tough
• Takes time
• You may fail
• You may not like what you see

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SUMMARY

• Written summary of your expenses vs. income.
• Plan for your money
• Important Information
• Its worth doing
• A key to reaching your goals.

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Credit

• The Credit Report
• The Credit Score
• Credit Cards

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What is a Credit Report?

• Transcript of your credit history

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Why Your Credit Report Is Important

• Who checks it

• Why it is important

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Summary

• Your credit report is your credit transcript
• Lenders use this to judge you
• Get a copy of your report from the big three
• Correct any inaccuracies

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THE CREDIT SCORE
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What Is A Credit Score?

• Your numerical grade
• Created by using the information found in your
  credit report
• Always changing
• Complex system

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Why Your Credit Score Is Important
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Dollars Cents

• Home Price
• 165,000 Loan
• 30 Year fixed

Over 76,500 difference
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CREDIT CARD DEBT
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Negatives of Credit Card Debt
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High Interest Rates
13.5
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6.25
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Over Spending

• Average cash purchase 4.50
• Average credit card purchase 7

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ACTUAL COST OF CREDIT CARD PURCHASES
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True Costs Of Purchases

• All credit card purchases are at premium if not
  paid off in full

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For Example
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Results

• 5,000 Original balance
• 3,664 Interest paid
• 8,664 Total payments
• 230 months of payments

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Double the Minimums

• Results

• 250 vs. 125
• 23 months
• 660 in interest

• Savings

207 payments 3,000 in interest
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Credit Summary

• True cost of credit cards is high
• Paying the minimums will be a long expensive road
• Extra payments have a tremendous positive impact
• High interest rates
• Your score is who you are to lenders
• A good score can save you thousands in interest
  payments
• Your credit report is your credit transcript
• Lenders use this to judge you

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Retirement
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WHY IT IS IMPORTANT TO PLAN FOR RETIREMENT
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Shifting Responsibility
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Traditional Retirement
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Your Retirement
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The Importance of Starting Young
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When 11 5

• Person A
• Starting _at_ 25 for 10 years

• Person B
• Starting _at_ 35 for 30 years

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Compound Interest
Interest On Interest
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Long Term Compounding
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Time Is More Valuable Than Money

• Person A
• Invested for 10 years
• Invested 30,000
• 467,000
• Person B
• Invested for 35 years
• Invested 90,000
• 367,000

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Retirement Summary

• Every dollar saved today is more valuable than
  the dollar saved tomorrow
• Today is the cheapest day to start saving
• Retirement is not going to just happen
• We need take responsibility for our retirement
  because no one else will
• We need to start now to make it happen

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THE IMPORTANCE OF SAVINGS
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Foundation For Success
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Safety Net
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The Purpose of An Savings
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Results of No Emergency Fund
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Summary

• A safety net
• Insulate you from life's unknowns
• Unexpected expenses
• Loss of a job

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• You are Leaders
• Good habits
• Good skills
• Desire to succeed
• Opportunity
• Knowledge

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QUESTIONS AND ANSWERS

• Thank You

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