Personal money mgt budgeting

Saunders Learning Group, LLC, Andover, KS

Unit One: budgeting

June 2012

Getting Your Finances on Solid Ground


Topics

Tracking your money flow

Maximizing your income

Thinking about tomorrow

Creating a budget


Saunders Learning Group provides a variety of training programs, workshops and seminars targeted to the financial services industry.

Programs are available in a wide range of topics, and we are specialists in developing custom programs that are targeted to your needs.

Contact the founder, Floyd Saunders at 316-680-6482 or at [email protected] for more information.

Training from Saunders Learning Group

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Welcome

Introductions


Tracking Your Money Flow

Create a spending plano Identify your incomeo List your expenseso Compare income and expenses


Tracking Your Money Flow

Plugging Spending Leakso An example of a spending leak:

You buy coffee every morning at $3.50 a day. That is $17.50 a week (5 days x $3.50), $70 a month (20 days x $3.50), $910 a year (52 weeks x $17.50).


Maximizing Your Income

Reducing variable expenses Workforce and personal

developmento Explore a tradeo Return to school


Managing Debt Effectively

How Much Debt Is Too Much? Using Credit Cards Wisely

o Shop around for the lowest rate.o Use only one or two cards.o Pay bills as soon as they arrive.o Always pay more than the minimum balance due.


The Top Ten Signs You Have Too Much DebtAlthough a limited amount of debt isn’t necessarily a bad thing, excessive debt can prevent you from achieving your long-term financial goals. Here are ten signs that your have too much debt:

1.More than 20 percent of your income goes toward paying off car loans, credit card debt, or other kinds of bills.2.You have to borrow money each month to pay off your debts.3.You don’t know how much money you owe.4.You pay only the minimum amount on each bill.5.You pay your bills late each month, and sometimes even miss payments.6.Creditors have to call you to get you to pay your bills.7.Businesses refuse to give you credit.8.You have taken money from retirement accounts and/or have used credit cards to pay normal monthly bills.9.You write post-dated checks.10.You have to take an extra job in order to keep up with your bills.


Ten Quick Ways to Start Getting Out of DebtDebt can make you feel like you’re living at the bottom of a deep well. But there are several ways to pull yourself up and out into the daylight of financial security. The following steps can help you get started:1.Start Today - Because interest on debt compounds over time, there’s no time to get started like the present.2.Cut your expenses so that you can use more of your money to pay off your debts.3.Work with a credit counselor to set up a debt-reduction plan. 4.Send any extra cash toward the creditor who is charging you the highest interest.5.Consolidate your loans by shifting higher-interest loans to a single lower rate loan6. Limit yourself to one or two credit cards.

1. Pay off other cards you, cancel other your accounts, and cut up those cards. 2. Keep the final one or two cards in a safe place at home, where you won’t be tempted to use them

for frivolous occasions. 3. Call the card companies and have the credit limit lowered on those last cards to prevent you from

running up too much debt on them.4. (To make sure that no other card offers come your way, you can call 1-888-5OPT-OUT.)

7.Earn the most money you can. Perhaps take a second job or work overtime to increase your monthly income. 8.Sell or trade items that you own yet never use. .9.When you pay off one debt, add that amount to the next biggest bill to begin to pay off the remaining bills faster (This is known as the snowball effect). 10.Be honest with yourself. If you purchased a car and having trouble making monthly payments, you may be better off selling the car and paying off your loan than letting a creditor repossess the car


the art of budgeting

04/09


the budgeting processphase 1: Assess your personal and financial situation

(needs, values, life situation).

phase 2: Set personal and financial goals.

phase 3: Create a budget for fixed and variable expenses based on projected income.

phase 4: Monitor current spending (saving, investing) patterns.

phase 5: Compare your budget to what you have actually spent.

phase 6: Review financial progress and revise budgeted amounts.


goal-setting guidelines

well-written personal and financial goals SHOULD:

be realisticI you are working part-time is not likely to be able to afford a new car every couple of years.

be specific“I want to save $5,000 for a down payment to buy a house.”

have a timeframe“I want to pay off my credit card within the next 18 months.”

state the action to be taken“I want to start an automatic deposit savings account with monthly withdrawals from mychecking account.”


setting up and maintaining a budgetincome budget actual difference

Job #1 $ $ $

Job #1 $ $ $

Other $ $ $

total monthly income

$ $ $

expenses budget actual difference

fixed regular expenses

Rent $ $ $

Car insurance $ $ $

Car payment $ $ $

Credit card $ $ $

fixed irregular expenses

Savings $ $ $

Food $ $ $

Utilities $ $ $


setting up and maintaining a budget (continued)

expenses budget actual difference

transportation

Bus fare $ $ $

Gas and oil $ $ $

Parking and tolls $ $ $

Repairs $ $ $

other

Medical expenses $ $ $

Clothing $ $ $

Entertainment $ $ $

Household items $ $ $

Personal items $ $ $

Tuition $ $ $

School expenses $ $ $

total monthly expenses

$ $ $


Thinking About Tomorrow

Start saving Create an emergency fun Plan with Short, medium, and

long-term goals


Review

Create a spending plan Plug the spending leaks Maximize your income Focus on your financial goals Create a budget that allows

you reach your goals


QuestionsQuestions


Post Workshop Action Plan

Complete the Post Workshop Action Plan

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About the Presenter Floyd Saunders has worked on Wall Street

with both Bank of America and JPMorgan, where is was a vice president in global financial systems. He has worked across the industry in retail, commercial, and investment banking.

He has taught courses in Money and Banking, Principles of Banking, Managerial Finance and extensively for the American Institute of Banking and various colleges.

As a consultant, he developed and taught a wide range of banking and investing courses.

He authored three programs for the American Bankers Association: Banking on Mutual Funds and Annuities, Introduction to Securities Markets and Investing in Securities.

He is the author of “Figuring Out Wall Street, a consumer’s guide to financial makets”

Look for his next book, “Family Financial Freedom” available as an e-book soon.

Personal money mgt budgeting

Economy & Finance

Transcript of Personal money mgt budgeting