Laura Connerly PhD Assistant Professor Wealth Recommendations Balance income amp expenses Calculate debt load Check credit report Know your credit score Save for emergencies Plan for retirement ID: 719963
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Slide1
Six Ways to Increase Wealth
Laura Connerly, Ph.D.
Assistant ProfessorSlide2
Wealth Recommendations
Balance income & expensesCalculate debt loadCheck credit report
Know your credit scoreSave for emergenciesPlan for retirementSlide3
Balance Income & Expenses
Income Statement
Expense Statement
Spending Plan
Fixed
Variable
Periodic
www.uaex.eduSlide4
Your Spending Plan
Total Income
-
Total Expenses
$?$?$?Slide5
Calculate Debt Load
List monthly payments:Car 325
Student loan 100Credit cards 75TOTAL 525Divide by monthly net income:
525÷2500=.21 OR a 21% debt load
Credit Management factsheets:
Managing Credit
Financial Fitness Series: Trim Your Credit Line
Credit Reports and Credit Scores
www.powerpay.orgSlide6
Check Your Credit Report
Equifax
ExperianTransUnion
Credit Bureaus
Online at:
www.annualcreditreport.comSlide7
Know your credit score
Credit scores must be purchasedEach credit bureau varies
Two major types:Fair Issac Corporation – FICO ScoreVantageScore Slide8
Save for Emergencies
Take Small Steps
Work toward 10%
Start and increase
Build Emergency Fund
Critical safety net
Start with $1,000
3 to 6 months of incomeSlide9
Plan for Retirement
Most people don’t save enough. Prepare for financial stability in later life:
Maximize matched contributions to employer provided planMaximize allowed contributions to IRAMinimize debt to retire debt free
Save and invest
www.extension.orgSlide10
Six Ways to Increase Wealth
Laura Connerly, Ph.D.
Assistant Professor