Money Management - 101 Practical Money Skills for Life What a Spending Plan will do for You Allow you to learn how finances work in your life Enable you to make good decisions about how you use money Make you aware of where your money is going Give you a way to save for specific items
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Practical Money Skills for Life
Make a realistic list of needs and wants
Food Lots of Money
Clothing Cell Phone
Housing VCR or Big TV
Transportation New Car
Child Care Designer Jeans
Make sure your goals are SMART…
Specific- Clearly state what you want to do
Measurable- Measure by time and/or money needed
Attainable- Make sure your goal is realistic and possible
Relevant- Make sure goals fit your needs
Time related- Set a definite target day (day/month/ year)
Put things in Priority Order- Imagine the actions you need to take to get from where you are now to where you want to be.
Goals are dreams with deadlines! Post your goals where you will see them frequently. Find a picture to represent your goals. Make them happen.
GOAL: Use cash to purchase a refrigerator in 6 months. New refrigerator will cost $600.00.
MUST SAVE FROM EACH PAYCHECK:
$100/Paycheck - if paid monthly
$50/Paycheck - if paid bi-weekly or semi-monthly
$25/Paycheck - if paid weekly
TARGET DATE: 6 MONTHS
How much money comes in each month?
Income has two parts:
Car Maintenance / Repairs
Gifts / Holidays
$2400 / 12 = $200/month
Keep and organize the following items to help you keep up with expenses
It’s never impossible to save money, no matter how small the amount.
Two types of savings accounts…
1)Emergency fund – provides means for paying for emergencies instead of using credit
2) Nest egg account- helps you reach specific goals such as buying a house or taking a vacation
Work average 22 days/month
Lunch $8.00/day $176/month
Coffee $1.00/day $22/month
Soft Drinks $1.00/day $22/month
Child’s Lunch $2.00/day $44/month
Rule of thumb for consumer debt
Under 15%=comfortable 15-20%=Caution
To figure your debt-to-income ratio:
Total average monthly debt payments
(excluding mortgage/rent and utilities) $400
Monthly take-home pay $2,000
$400 ÷ $2,000 = .20 = 20%
Developing a Personal Spending Plan will show you…
Develop a Plan
Balance Spending and Saving