Personal Financial Management Seminar. Office of Frank M. Pees Standing Chapter 13 Trustee. Debtor Education. Personal Financial Management. Meets post-filing financial education requirement. Must show ID and sign-in and sign-out to receive certificate.
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Office of Frank M. Pees
Standing Chapter 13 Trustee
Setting goals and Creating a Plan
(Break) : Enjoy Refreshments!
Restoring Your Credit
Wise Use of Credit
What does financial success mean to you?
List 5 things you want to do in your lifetime.
MONEY AND GOALS QUESTIONNAIRE
with other life plans.
Step 3: Make a Plan
Step 4: Take Action
Take the first step. It is often the most difficult.
Identify the end point for each step & reward yourself for achieving it.
Review your progress along the way.
Work through or around roadblocks and obstacles.
Activity #8– Page 1-14 in workbook
Keep On Keeping On.
Persistence Usually Wins!
$Managing your Money $
Subtracting expenses from income
Analyzing and trimming expenses
Net Monthly Income
Types of Expenses Examples
Fixed Mortgage, Rent, Chapter 13 Payments, Support
Variable Clothing, Food, Gas for auto, Utilities
Periodic orInsurance (house, car) Unexpected Property/Income Taxes
Activity #2 in Lesson 2, page 2-3
How much do you think you spend?
Write down everything you spend every day for one month
Do you know where your money actually goes?
Write down every time money is spent, even on the smallest things.
Track weekly expenses
Do this for 4 weeks
Total weekly expenses
to get monthly totals
The first step is to see where you are so you can begin to make plans to get where you want to be.
Pack lunch for work or school
Cancel extra cable services
Use the public library for DVDs & magazines
Dollar stores, secondhand clothing shops
Use coupons and look for specials
Plan meals weekly or monthly & build menus from what’s on special
As soon as you receive your payment termination letter at the end of your case, start saving 5% - 10% of each & every paycheck from each & every wage-earner.
Start a savings habit that continues for the rest of your working life.
Pay yourself first. Use direct deposit if possible.
Children spell LOVE:
It’s the time we spend with family & friends that matters most.
“It’s good to have money and the things that money can buy, but it’s good too, to make sure you haven’t lost the things that money can’t buy.”
George Horace Lorimer
Editor, Saturday Evening Post 1899-1937
In the last 15 years a tremendous amount of research has gone into how to get people to buy.
The Trustees’ Education Network included this chapter to help people protect their hard-earned money.
Ever go to the store for a loaf of bread and spend $30.00?
According to the experts
Between 20% and 70% of all purchases are impulse or unplanned purchases
Marketing experts have researched ways to increase unplanned purchases through:
Atmosphere---texture, sound and smell
Color--- Influences Purchases
Red ---Raises the blood pressure. Creates the feeling of excitement. It may cause us to be less rational.
--Used in signs, brand labels and sale signs.
Blue ---Send the message of trust and loyalty.
--Used by many insurance companies, banks, medications or any product they want you to trust.
Green ---Associated with money, wealth and nature.
--Used by banks, investment firms, and companies associated with the outdoors.
Black and Silver ---Used to sell luxury items.
--Cars, computers and cell phones
What do these background colors say?
Researchers have determined which colors appeal to what kind of person.
Transition Zone---Just as you enter the store
This zone is designed to separate us from the hustle and bustle of our lives. Makes us feel good and prepare us for the store’s promotions. If we are happy we will buy more.
Grocery stores use flowers and fresh bread.
There are appealing smells there too.
Clothing stores use displays of enticing garments. Usually on the right side.
Research has gone into the type of music the store plays.
Uncarpeted isles in department stores are meant to lead you past certain merchandise.
Some department stores are using smell to increase the likelihood you will buy.
Food courts in malls and coffee and snacks in book stores are meant to get you to stay longer. The longer you stay, the more you will buy.
What are some of the advertising tricks that irritate you?
What hints can you give to avoid impulse buying.
Tricks to Avoid Impulse Buying
Smart shopping begins at home. Make a list. Stick to your list. See Sample Shopping List
This saves on those $30.00 loaves of bread.
“Sleep on” major purchases. (Google complaints about products before you buy or check consumer reports.)
Know your store. Go to the items you need and don’t browse.
Don’t use a cart or use the smallest one you can find.
If you use a cart, review your cart for items you might want to put back before you get in line. (Think about whether or not you really need the item.)
Check the advertisements before you go. Try to build your week’s menu based on what is on sale.
These items are sold at or below cost. The stores try to get you in the store hoping you will buy something else.
Shipping and handling or batteries not included.
Packages with more than one item grouped together. Sometimes they cost more than single ones.
Same sized container, but one is 10 ounces and the other is 12. (We don’t buy 1 pound bags of chips or ½ gallons of ice cream any more.)
Comparison shop. (Many stores will price similar items--one in pounds and one in ounces. They make it hard to compare—Take your calculator.)
Ask yourself first:
Is there something else I need to spend this money on?
Have I already spent too much money on things like this?
How disappointed will I be if I don’t buy this today?
Better Business Bureau
Call before you have work done or have complaints
Chamber of Commerce
(if no BBB in your city)
Federal Trade Commission
Fraud, deceptive, unfair business practices and identity theft. (Identity theft only takes a SS#.)
US Post Office
If you feel you’ve been defrauded through the mail
Food & Drug Administration
For problems with foods, drugs and cosmetics
Misleading or deceptive ads on TV or radio
to report con-artists or crooks going door-to-door
State Attorney General
for problems with items made, sold or advertised within the state.
DO NOT CALL list(handout page 3)
1-888-382-1222 or www.donotcall.gov
Forward unsolicited and phishing emails to:
In Lesson 3, bottom of page 3-8.
Be careful it is not a scam. Up to 80% are scams.
Always in top 5% of all complaints BBB receives.
If you have to pay money to make money, it is
not a legitimate business opportunity.
77,000 people paid $3 million to get involved assembling “refrigerator magnets” at home. They were told they could earn $800 per week in this business.
To do that, of course, they’d have to assemble 20 magnets per hour for 40 hours per week for $1 per magnet. Since most of these refrigerator magnets don’t sell for over a couple bucks each, how did they think they could make more than the distributor and retailer combined?
Don’t shop on payday.
Have a spending plan and stick to it.
If you must shop when you’re hungry, tired or in a hurry, buy only the things on your list.
You don’t have to buy it today. Take a step back or sleep on it.
The sales person is there to make money for themselves or the store, not save you money.
Remember, _________ even if it is on sale, you will save more money if you don’t buy it.
depends on credit score
when bankruptcy was filed.
computer. Gain points for
positive info & lose points
for negative info.
& uses letter grades, A to F.
To calculate estimated FICO
score from a VANTAGE score,
multiply it by .86.
If you must use credit, be sure you use the type of credit that best meets your needs.
(handout page 7)
Consider these short-term alternatives to borrowing money, but remember that selling goods and services, bartering, and renting out space may cause a taxable event.
If you have any skills, talents or hobbies, offer your services to your neighbors or friends for a fee. Sewing, mowing lawns, running errands, babysitting or walking the dog are examples. If you are good with crafts, check out Etsy.com as a way to market your goods.
If your crisis involves a car repair and you know a good mechanic, offer him a service in exchange for the repair. In other words, pay with a service instead of with cash.
The internet is a great place to sell your gently used items. EBay and Craigslist are just two of many websites that make it easy to list and sell your items.
If you have an extra room in your house or you are not using your garage, think about renting the space for extra income. Make sure you carefully screen any applicant.
Limit yourself to necessary services until the crisis passes. For example, cancel premium cable channels, data packages on your cell phones and gym memberships. Be aware of cancellation charges prior to taking action.
Some commercial blood banks pay up to $50 cash to blood/plasma donors per visit up to 4 donations a month. Remember, there could be some health risks for frequent donors, so ask your family physician about the risks prior to giving.
Check with the Salvation Army, the American Red Cross, the department for Human Services, Community Action Organizations, Traveler’s Aid, and other humanitarian organizations for assistance with rent, food, utilities, medical bills, prescriptions, and transportation needs. Religious organizations such as Lutheran Social Services, Catholic Social Services, or local churches in your area may have programs to help.
If you are in the military, contact the Dept. of Defense at www.militaryonesource.comor call 1-800-342-9647 or contact a Military Aid Society.