What’s really important?

1. What’s really important? What’s really important? Where do I want to go from here?

2. Plan Goals Personal Financial Choices Things You Want to Do Way You Want to Live Things You Want to Have Ideals Beliefs Values Philosophy Communication Attitude Components of Good Money Management YOUR Plan is YOUR Decision….

3. 1 - Wants v. Needs

4. 2 - SET S.M.A.R.T. GOALS • Specific • Measurable • Attainable • Relevant • Time-related

5. LONG TERM = 5 years + Set Goals Short term = 1 year or less

6. TAKE ACTION: I will save “X” number of dollars each month in 2013 by December 1 for emergencies. 1. Name your savings goal - enthusiasm 2. Share you savings goal – 10x more likely to succeed 3. Review/modify – savings increased 20%

7. Inventory your business Write down everything you spend every day for one month. The FOUNDATION of Money Management is spending LESS than you make regardless of the amount!

8. Where does your money go? • Write down every time money is spent, even on the smallest things.

9. Types of Expenses Types of Expenses Examples • Fixed Mortgage, Rent, Car Payments, Child Support • Periodic Insurance (house, car) Property/Income Taxes • Variable Clothing, Food, Phone, Entertainment

10. Create a personal spending plan page 2-10 The first step is to see where you are so you can begin to make plans to get where you want to go

11. Spending Plan %’s Mortgage/Rent divided by NET income SHOULD NOT equal more than .3 or 30% Auto Expenses (include monthly payment, gas, upkeep) divided by NET income SHOULD NOT equal more than .2 or 20% Food (include grocery/eating out/snacks) SHOULD NOT equal more than .15 or 15% TOTAL of these SHOULD NOT be more than .65 or 65% 35% left over for . . . to pay incidentals to save debt payments unexpected emergencies medical/dental expenses

12. BUDGETING IN A NUTSHELL • Set short term goal of $3.00/day to begin building your emergency plan! • Track EVERYTHING • Determine if Fixed, Periodic or Variable • Concentrate on Variable FIRST – decide what to TRIM • Look to FIXED – if re-evaluating – use spending plan %’s • Compare net income to expenses – AGAIN • If still a deficit – increase income or TRACK again

13. “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

14. Buyer Beware!

15. Consider when shopping • - Compare prices and quality • - Research before buying • - Plan shopping in advance • Walk away, think about it before you buy • Don’t buy on impulse • www.stoppingovershopping.com

16. Additional Resources www.freecycle.org www.bountifulbaskets.org www.moneymindedmoms.com Interesting Fact: The USDA claims the average US family wastes over $3000/yr in food that goes bad!

17. Debt Warning Signs • Don’t Have Enough Saved for Emergencies • Make only Minimum payments on CC bills • Routinely Spend MORE than you earn • Transfer balances from one card to the other instead of making payments • Unsure of total amount you owe creditors • Bounced Checks • Use more than your total income just to pay off debts

18. CREDIT INFORMATION www.federalreserve.gov Credit Card Act of 2009

19. Kinds of Credit • Secured • Something of value promised to lender • Unsecured • Loan without collateral - higher interest rate • Payday Loans The average annual percentage rate (APR) on payday loans is 430.69%! There are more payday loan stores than McDonald’s restaurants in America. 5-4 5

20. Other forms of Credit • Rental Purchase (Rent to Own) • Use an item for a period of time, then return it if you desire. Weekly or monthly payments • Lease • Use a car for a period of time, the down payment and monthly payments are almost always lower than purchasing a car. Costs more in long run

21. Get Off and Running NOW with your Credit !!!! www.annualcreditreport.com 877.322.8228 According to Experian VP: A credit score between 760-850 saves the average consumer $1 million over a lifetime! 60% of potential employers do a credit check The difference between a 789 and 790 can make a $3000 difference on a loan!

22. Credit Score - FICO • Most creditors use FICO • 350-850 • Average American’s score is 678 • Average Score Coming out of a Ch 13 is a 604 according to ABI in July 2012! • Payment History (35 %) - character • Amounts Owed on accounts (30%) - capacity • Length of credit history (15%) - character • NEW credit (10%) - capacity • Types of Credit (10%)

27. Ways to Re-Build Credit • Open a savings account and begin making regular payments • Make ALL payments (including utilities) on time • Close any open accounts that you are NOT using • Keep charges at 50% or less than available credit limit

28. Homeowners Insurance • Texas Fair Plan (800) 979-6440 • www.texasfairplan.org • www.helpinsure.com

29. Car Insurance • Texas Automobile Insurance Plan Association (TAIPA) • … “available to drivers who cannot find basic liability insurance elsewhere.” www.taipa.org www.tdi.state.tx.us 1-800-252-3439 Consumer Help Line

30. Consumer Information • National Do Not Call List at www.donotcall.gov or call 1-888-382-1222 • Info on the Fair Debt Collection Practices Act go to www.fair-debt-collection.com Federal Trade Commission www.ftc.org/gov regional office: 214.979.0213 1 (877) 438-4338

31. Identity Theft • Fastest growing crime in America • DFW 4th in nation • FACTA – federal law helps protect • Review credit reports periodically • Be aware of fraud

32. Good luck… reach for the Stars!!!