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www.lifethenfinance.com Managing Your Money Effectively: Overview

Managing your money effectively

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Page 1: Managing your money effectively

www.lifethenfinance.com

Managing Your Money Effectively: Overview

Page 2: Managing your money effectively

www.lifethenfinance.com

It’s a good time to summarize the most important points of

managing your money effectively!

Page 3: Managing your money effectively

www.lifethenfinance.com

Budgeting

• Keep track of how much you have, earn, and spend• Remember fixed, variable, and non-essential

expenses• Earn more than you spend!

Page 4: Managing your money effectively

www.lifethenfinance.com

Earn More Than You Spend

Page 5: Managing your money effectively

www.lifethenfinance.com

Saving Money

• Minimize your spending• Use coupons and preferred customer programs• Search for used items instead of new ones

Page 6: Managing your money effectively

www.lifethenfinance.com

The Power of Change

• Use a change jar• Roll your own change, saving the fee at the grocery

store machines• Some banks will transfer your change to your

savings account

Page 7: Managing your money effectively

www.lifethenfinance.com

Time Is On Your Side

• The earlier you start saving, the better• The interest you earn accumulates over time

Page 8: Managing your money effectively

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Separation Can Relieve Anxiety

• Putting the money in a place where you won’t think about it is a great way to get into the saving habit.

• Out of sight, out of mind!

Page 9: Managing your money effectively

www.lifethenfinance.com

Credit Cards are Risky Business

With great freedom, comes great responsibility!

Page 10: Managing your money effectively

www.lifethenfinance.com

The Score Does Matter

• Things that can be affected by a low credit score are:o Ability to get a mortgageo Ability to rent an apartmento Your interest rate on loans and credit cardso Your credit limito Cell phone serviceo Finding a jobo Acquiring insurance

Page 11: Managing your money effectively

www.lifethenfinance.com

Debt Management

• Pay off your credit cards in full every month, if possible• The best way to get out of debt is use the debt snow-ball. • Pay minimums on all debt and any extra money goes to

paying off the smallest debt on your list.

Page 12: Managing your money effectively

www.lifethenfinance.com

Getting Out of Debt

Credit Cards

Bank Loans

Mortgage

Page 13: Managing your money effectively

www.lifethenfinance.com

Paying off Your Credit Cards

The

SnowballEffect

Page 14: Managing your money effectively

www.lifethenfinance.com

Beware of Identity Theft

• Shred all credit card bills before throwing them out• When shopping online make sure the site you use

is safe and reliable

Page 15: Managing your money effectively

www.lifethenfinance.com

Credit Score

• Your credit score can be lowered by:o Applying for credit cardso Not paying your bills on timeo Having a high credit balanceo Missing paymentso Late payments

Page 16: Managing your money effectively

www.lifethenfinance.com

Making Extra Money

• Utilize the internet• Sell things at flea markets, eBay, and Amazon• Provide virtual assistance online• Offer your services in your community

Page 17: Managing your money effectively

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Small Transactions Add Up

• Be wary of small credit card purchases• Set aside small amounts of money each week• As long as you save what you can, you’ll be on your

way to a financially comfortable life

Page 18: Managing your money effectively

www.lifethenfinance.com

The Thing You ‘Need’ is Often...

…Just something you want!Be mindful of the difference

between a NEED and a WANT

Page 19: Managing your money effectively

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If you can put off the urge to buy stuff, you can discipline yourself to only buy things when you can afford them.

Page 20: Managing your money effectively

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In Closing

• Knowing how to handle your money will make it much easier and can lead to a more comfortable life!

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You can do it!

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