Realizing the American Dream

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Realizing the American Dream. Managing Your Money. Agenda. Getting started Planning how to spend your money Developing and making a spending plan to meet your goals The importance of saving Getting help. Why a Spending Plan?. Prepare for large expenses Encourage savings - PowerPoint PPT Presentation

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  • Realizing the American DreamManagingYourMoney

  • Agenda Getting started Planning how to spend your money Developing and making a spending plan to meet your goals The importance of saving Getting help

  • Why a Spending Plan?Prepare for large expensesEncourage savingsPrepare for surprise expensesIdentify wasteful spendingAccomplish goals

  • How Do You Use Money?The Super Saver The Conservative The Carefree The Big Spender The Over Spender

  • Rate Your Spending Habits Things easiest to change? Things hardest to change? Is a house worth giving these things up? Are you ready to do this? Other things you want to do first?

  • Establishing a Spending PlanDetermine your monthly net incomeCalculate your monthly expensesSubtract your regular expenses from your income

  • Keeping Track of Spending Save all receipts Record in a small notebook

  • Setting Household GoalsDiscuss household goals Be specific and realistic Rank household goals in order of importanceAgree on top goalsFigure out how much it will cost to reach your goals

  • Wants vs. NeedsNeeds = items you must have for basic survivalWants = things you desire but can live without

  • Different Types of ExpensesFixed expensesPeriodic fixed expensesFlexible expensesIndebtedness expenses

  • Trimming ExpensesClip couponsUse a list to do grocery shoppingMake cost comparisons funGet three quotes for large purchasesAgree on allowance for each household member

  • Trimming Expenses (Contd)Eat at homeTake lunches to workShop in resale storesTrade services with friendsFind fun activities that are free

  • Money Management TipsPlan according to current incomePlan ahead for six monthsInclude spending money for allKeep record keeping simple

  • Money Management Tips (Contd)Set money aside for maintenance & reserves Pay yourself first - at least 10% of take-home payGet consensus from entire household

  • Reviewing the PlanIs the spending plan working?Are all household members able to follow it?Which costs always seem to be over the planned amount?Are we getting closer to reaching our goals?

  • Making Money Management EasierDecide who pays billsKnow when bills are dueUse utilities level billing paymentsOpen a checking accountOpen a savings account

  • Making Money Management Easier (Contd)Consolidate credit card accountsConsider selling a carCheck your interest ratesStick to the plan

  • Controlling Day-to-Day SpendingCarry written reminders of your goalsCarry as little cash as possiblePay with cash, check or debit cardAvoid using credit cardsBuy only what you need

  • Importance of Saving$1,504.09 in 2 years$2/ day2% interest=Try to save 10% of your income on a monthly basis!

  • Types of Savings AccountsRegular savings accountClub accountCertificate of deposit (CD)Money market accountMatched savings account (IDA)

  • Tips for SaversPay yourself firstOpen a savings account far away from home and workSave change at end of dayBank your surprises

  • Getting HelpNeighborWorks AmericaNational Foundation of Credit CounselorsHUD

  • SummaryImportance of a realistic spending planSteps in developing a spending planSetting financial goals and making a spending plan to meet your goalsTrimming expenses and making money management easierUsing strategies to increase savings