Developed for Crossroads Ministry of Estes Park by Andrea R McCready MBA Marsha Yelick CFA Based on materials provided by Spanish Version Translated by Eva Banuelos Welcome Introductions ID: 612971
Download Presentation The PPT/PDF document "Money Matters – Part 2" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Money Matters – Part 2
Developed for Crossroads Ministry of Estes Park
by
Andrea R. McCready, MBA; Marsha Yelick, CFABased on materials provided by
Spanish Version Translated by Eva BanuelosSlide2
Welcome
Introductions
Why arewe here?Slide3
Money Matters Seminars
WEEK 1 – Goals and Banking and Other Financial StuffWEEK 2 - Dealing with Debt and Anticipating the Future.
FUTURE - One-on-one financial counseling with a Crossroads case manager or Library Financial Counselor. Slide4
Set yourself up for success!
Policies and ProceduresCompleting the SeminarsSlide5
Session 2Objectives
Dealing with debt.
Managing credit and credit scores.Creating and keeping a budget.
Debt recovery strategies.Money saving ideas.Slide6
Too much debt?
Americans, in general, have a debt problem!
People &
The GovernmentSlide7
Signs of personal debt distress
Credit cards
for basic living expenses.Overdraft protection for monthly bills.
Savings to pay bills. One credit card to pay another.Delaying one bill (or “floating”) to pay another.Slide8
More signs of debt distress
Payday
loans.Paying only the minimum due on credit cards.Over the limit on one or more lines of credit.
Delaying medical and dental visits.Do you have too much debt – Exercise 1Slide9
A Better Path –
A Budget (Spending Plan)
Seventeen reasons why EVERYONE needs a Spending Plan!Slide10
Create a Spending Plan
Main components of using a budget
IncomeExpenses
Compare budgeted income to expensesCompare actual income to expensesMake necessary
changesSlide11
Pay Yourself First (PYF)
Make SAVINGS a HABIT.
Establish the habit.Don’t spend all your earn (but treat yourself occasionally).Before paying bills, SAVE:
Paychecks / Tips / ChangeBonuses / Coupons / SalesIncome tax
refunds
8Slide12
Create YOUR Budget!Slide13
Analyze and revise
Compare
Make changes Save moreAdjust
10
It’s YOUR budget!Slide14
Plug the spending leaks
Common leaks?
Plugging techniques? 11
WHERE DID MY MONEY GO???Slide15
Debt reduction plan
DEBT REDUCTION
Do not take on NEW debtCreate a plan to reduce debt (THE SNOWBALL)
Limit – two credit cards pay off new purchases
12Slide16
Avoid quick fixes - $$$
Pawnshop loanPay day loanTax
refund loanTitle loanDebt consolidation loansRent-to-own stores
13
It costs LOTS OF MONEY forSlide17
Keep a good FICO score
35% - Payment history
30% - Amount owed15% - Length of history10% - New credit added
10% - Types of creditHigher rating – lower interest rate
Check rating - AnnualCreditReport.com Slide18
Financial Pitfalls
Same as cash offers
Online buying - returns are complicated
Loaning to family or friendsSlide19
YOU ARE WORTH THE EFFORTSlide20
Be a Smart Consumer
S-T-R-E-T-C-H Your DollarsSlide21
Stretching your $-$-$
SOME IDEAS:Buy used.
Discounts, coupons, sales, barterPlan meals around what you have and items on sale.Library for books, classes, DVDsEat at home and pack lunchesBuy in bulkUse community services – Crossroads for FOOD
Avoid prepared food (cook “from scratch”)Limit eating outMaintain your car to avoid the BIG billsEtc………Slide22
Conserve energy & saveSlide23
Stretching your $-$-$
SOME IDEAS:Sunshine and drapesVentilations fans
Lights out Compact Fluorescent bulbs (CFI) lightbulbsShowers under 5 minutes Wash only full loads Cover pans Small appliances (crock pot, electric skillet)
Cover and wrap refrigerated foodEtc………Slide24
Avert Shelter Crisis
SOME IDEAS:
Rent – Keep it less than 30% of income.Factor in all costs.Be honest.
Have an emergency fund.Avoid frequent moves.Late rent? Talk to your landlord immediately!
Seek help.Slide25
Love and MoneySlide26
Talk! (about money)
SOME THINGS TO CONSIDER AND DISCUSS:
Talk about money.With your spouseWith others who can educate you
Discuss goals, value, dreams.Avoid emotional issues (control, judgment, power, the past).Develop a future plan.
Stay positive.Slide27
Do you need a will?
You need a will!!(Bank Account, Car, House, Stuff)
Make it easyName a guardian for childrenSlide28
Have a will, just in case
Hand-written or typed (Use the internet.)
Two disinterested witnesses In presence of a Notary PublicUsing an attorney is not
required!Slide29
Any Additional QuestionsSlide30
Post-Test