B U D G E T I N G D E E P D I V EW I T H K AT E D O R E

KATE DORE

@CashvilleSky

MY STORY

FROM BURNT OUT AND BROKE TO FRUGAL AND FREE

IS YOUR FINANCIAL HOUSE IN ORDER? MINE WASN’T.

BUDGETING DEEP DIVE

K E Y Q U E S T I O N S• How much do I earn?

• How much do I spend?

• What is my credit score?

• How much debt

• How does my debt

do I have?

compare to my income?

YOU NEED TO KNOW

HOW MUCH IS COMING IN

VS. HOW MUCH IS GOING OUT

NO ONE LIKES

FACING THE NUMBERS,

BUT YOU NEED TO KNOW

EXACTLY WHERE YOU STAND.

BUDGET PARTY!

BANK STATEMENTS + SPREADSHEETS

BANK STATEMENTS + SPREADSHEETS +

WINE

BRUNCH & BUDGET

BUDGET DATE NIGHT

LOOK CLOSELY AT EXPENSES

ARE THERE MONEY LEAKS?

MONEY LEAKS YOU MAY NOT HAVE THOUGHT OF

INSURANCE PREMIUMS

MONTHLY SUBSCRIPTIONS

RIDE SHARINGFOOD DELIVERY

BANK FEESCELL PHONE

HEATING & COOLING

DID YOU KNOW NEARLY EVERY BILL IS NEGOTIABLE?

COMPANIES THAT WILL NEGOTIATE YOUR

BILLS FOR YOU:

• BILLFIXERS • BILLCUTTERZ

BUT THEY DO CHARGE A FEE…

GOT A PROBLEM AREA?

SWITCH TO A 30-DAY

CASH DIETFOR YOUR

PROBLEM AREA(S)

TIRED OF BUDGETING SPREADSHEETS?

PERSONAL CAPITAL

COST: FREE

MINT

COST: FREE

YOU NEED A BUDGET (YNAB)

COST: $50 PER YEAR

POCKETGUARD

COST: FREE

MVELOPES

COST: FREE - $95 PER YEAR

TWO THINGS ARE CRITICAL:

• 3-6 MONTH EMERGENCY FUND

• KNOWING YOUR BARE BONES BUDGET

WHAT’S THE RIGHT AMOUNT FOR YOU?

Does your employer or union provide a loss of income protection plan like short or long-term

disability insurance?

How robust is your medical insurance plan?

What is your level of fixed expenses and debt? You should still have an emergency fund of at

least $1,000 if you’re dealing with debt.

Does your family have additional sources of income?

Do you have access to a home equity line of credit?

WHERE TO STASH YOUR EMERGENCY FUND:

• CHECKING • SAVINGS • MONEY MARKET DEPOSIT • CERTIFICATE OF DEPOSIT

WHAT IS YOUR BARE BONES BUDGET?

WHAT MAKES A CREDIT SCORE?

WHAT MAKES A CREDIT SCORE?

• 35% - Payment History

• 30% - Total Debt & Utilization

• 15% - Length of Credit History

• 10% - Types of Credit in Use

• 10% - New Credit

WHAT IS A GOOD CREDIT SCORE?

FICO SCORES

VANTAGESCORES

WHY DO CREDIT SCORES MATTER?

BEING APPROVED FOR CREDIT

• Mortgages

• Refinancing Student Loans

• Credit Cards

• Personal Loans

• Car Loans

AFFORDABLE INTEREST RATES

30-year fixed rate mortgage for $240,000

840 - 850 score:

3.5% interest - $147,975 total

680 - 699 score:

4.375% interest - $191,382

THAT’S $43,407 EXTRA IN INTEREST!

DO YOU KNOW WHO ELSE CHECKS YOUR CREDIT SCORES?

• Your written request

• Satisfying a federal court order or subpoena

• Financial institution completing a credit application for a loan

• Utility companies

• Insurance underwriters

• Government agencies for certain licenses or government benefits

• Landlords

• Potential Investors

• Current creditors for collections efforts

• Child support enforcement

• Prospective employers (only with your written consent)

Yup, 47% of employers conduct credit checks!

WHERE CAN YOU GET YOUR CREDIT SCORE?

ANNUALCREDITREPORT.COM

• Free, once per year • Raw credit scores from Experian, TransUnion, Equifax

WHY MONITOR YOUR CREDIT REPORT?

1 in 4 people have an error in one of their credit reports.

1 in 20 people have a SERIOUS error in one of their credit reports.

WHERE TO MONITOR FOR FREE

Credit Karma - Experian & TransUnion

Quizzle - Equinox

Credit Sesame - TransUnion

These aren’t FICO scores, but some banks are starting to offer those for free, as well.

TACKLING DEBT

WHAT IS YOUR DEBT-TO-INCOME RATIO?

GROSS MONTHLY INCOME /

TOTAL DEBT

WHY DEBT-TO-INCOME MATTERS

40 - 50% DEBT TO INCOME IS RISKY

50% OR MORE DEBT-TO-INCOME CAN BE DANGEROUS

A STRONG CREDIT SCORE & LOWER DEBT-TO-INCOME RATIO EQUALS MORE OPTIONS

• BALANCE TRANSFER CREDIT CARDS • LOW-INTEREST PERSONAL LOANS

BUDGETING, YOUR CREDIT SCORE, AND DEBT PAYOFF ARE TOOLS

THESE TOOLS MAKE ROOM FOR THE MOST IMPORTANT QUESTION:

HOW MUCH IS AN HOUR OF YOUR LIFE WORTH?

GOT QUESTIONS?

CashvilleSkyline.com

@CashvilleSky

Facebook.com/CashvilleSky