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