MONEYMONEYMANAGEMENTMANAGEMENTSTRATEGIESSTRATEGIES

The Marcy BuildingThe Marcy Building167 Polk St167 Polk St

Watertown, New York 13601Watertown, New York 13601315-788-4790315-788-4790

1-877-EAP-NEAS 1-877-EAP-NEAS www.neaseap.org www.neaseap.org

WHAT DOES MONEY MEAN WHAT DOES MONEY MEAN TO YOU?TO YOU?

Love?Love? Security?Security? Independence?Independence? Pay bills and don’t think about the rest?Pay bills and don’t think about the rest? Never enough of it?Never enough of it? Don’t think you deserve a lot of it?Don’t think you deserve a lot of it? Afraid to say “I want to be wealthy?”Afraid to say “I want to be wealthy?”

QUESTIONS ABOUT MONEYQUESTIONS ABOUT MONEYLEAD TO OUR MEMORIES OF MONEYLEAD TO OUR MEMORIES OF MONEY

What was the family message about money What was the family message about money growing up?growing up?

Was money discussed in your home?Was money discussed in your home? Did you receive an allowance?Did you receive an allowance?

Did you work when you were a teenager?Did you work when you were a teenager?

MORE MONEY QUESTIONSMORE MONEY QUESTIONS

When was the first time you went into debt When was the first time you went into debt for something you wanted?for something you wanted?

When was the first time you remember losing When was the first time you remember losing money?money?

Did money influence your choice of career?Did money influence your choice of career? Is money your friend or your enemy?Is money your friend or your enemy?

FRIGHTENING STATSFRIGHTENING STATS

70% of all consumers live from paycheck to 70% of all consumers live from paycheck to paycheckpaycheck

On average, workers between the ages 25-34 must On average, workers between the ages 25-34 must spend 25 cents on every dollar earned on debt spend 25 cents on every dollar earned on debt repaymentrepayment

Foreclosures have increased 200% since 2007Foreclosures have increased 200% since 2007 71% of bankruptcies are chapter 7 which is 71% of bankruptcies are chapter 7 which is “total”“total”

bankruptcybankruptcy where you lose everything. 95% of where you lose everything. 95% of those cases were “no asset” cases, meaning they those cases were “no asset” cases, meaning they had no assets to lose by the time they go to had no assets to lose by the time they go to bankruptcy.bankruptcy.

MONEY PROBLEMS WILL NOT BE MONEY PROBLEMS WILL NOT BE SOLVED WITH MORE MONEY!SOLVED WITH MORE MONEY!

MONEY PROBLEMS ARE ABOUTMONEY PROBLEMS ARE ABOUT

Spending more than you can affordSpending more than you can afford Choices that have been madeChoices that have been made Satisfying wants instead of needsSatisfying wants instead of needs Being without a plan Being without a plan ProcrastinationProcrastination Low skill level dealing with financesLow skill level dealing with finances

MONEY ISSUES CAN BE MONEY ISSUES CAN BE SOLVED BYSOLVED BY

Determine needs vs. wantsDetermine needs vs. wants Learn new skills-how to make effective Learn new skills-how to make effective

decisions, positive choices an identify needsdecisions, positive choices an identify needs Set goals, prioritize and be realisticSet goals, prioritize and be realistic Determine where you want to beDetermine where you want to be Creating a Budget Creating a Budget PrioritizePrioritize

Values Activity…What’s Important?Values Activity…What’s Important?rate the following activities:1=most important,rate the following activities:1=most important,

2=somewhat important, 3=not important2=somewhat important, 3=not important(add any other areas personal to you(add any other areas personal to you))

FoodFood HealthHealth EducationEducation SavingsSavings VacationVacation Job/ProfessionJob/Profession HomeHome Debt ReductionDebt Reduction InvestmentsInvestments BoatBoat New carNew car

FamilyFamily InsuranceInsurance AssetsAssets ClothesClothes RecreationRecreation CharityCharity EntertainmentEntertainment RetirementRetirement Insurance Insurance HealthHealth FriendsFriends OtherOther

BUDGETINGBUDGETING

Why do we need to budget?Why do we need to budget? What is a budget?What is a budget? What do you earn?What do you earn? Where does your money go if you don’t Where does your money go if you don’t

know where it goes?know where it goes?

BUDGETING FOR SUCCESSBUDGETING FOR SUCCESS

Plan for emergenciesPlan for emergencies Decide what is absoluteDecide what is absolute Shop when you REALLY need somethingShop when you REALLY need something Know when it is a WANT instead of a NEEDKnow when it is a WANT instead of a NEED Grocery shop with a list and stick to it Grocery shop with a list and stick to it Get in the habit of savingGet in the habit of saving SAVE for major purchasesSAVE for major purchases

ENVELOPE SYSTEMENVELOPE SYSTEM

Make an envelope for each expense category (rent, Make an envelope for each expense category (rent, utilities, food, etc). utilities, food, etc).

Label the envelope with the purpose, amount, and Label the envelope with the purpose, amount, and date due. date due.

When you receive income, divide it into amounts to When you receive income, divide it into amounts to cover the expenses listed on the envelopescover the expenses listed on the envelopes

Helpful Tip:Helpful Tip: Pay your bills right away, so you won't be tempted to Pay your bills right away, so you won't be tempted to

spend the money for something else.spend the money for something else.

EMERGENCY FUNDEMERGENCY FUND

Start smallStart small Automatic deductionAutomatic deduction Payroll deductionPayroll deduction Treat it as a billTreat it as a bill.. Reduce an expense, Reduce an expense,

save itsave it Round upRound up Tip yourselfTip yourself

Everyone has a coffee Everyone has a coffee factor… find yours.factor… find yours.

Keep paying debt, Keep paying debt, but to yourselfbut to yourself..

Budget big for Budget big for groceries, then save groceries, then save the differencethe difference

Save your changeSave your change Pay yourself firstPay yourself first

THE BORROWER THE BORROWER

IS THE IS THE

SERVANT TO THE SERVANT TO THE LENDER LENDER

GETTING OUT OF DEBTGETTING OUT OF DEBT

Know who you owe, how much, for how longKnow who you owe, how much, for how long Look for ways to increase income & decrease Look for ways to increase income & decrease

spendingspending Do not use credit to pay debtDo not use credit to pay debt It you can’t make payments, contact your It you can’t make payments, contact your

creditors as soon as possiblecreditors as soon as possible Contact a credit counseling serviceContact a credit counseling service

(consumer credit counseling 782-2227)(consumer credit counseling 782-2227)

CREDIT CARDSCREDIT CARDS

If you spend $4,000 on credit cards at If you spend $4,000 on credit cards at 18.5% interest and pay only the minimum 18.5% interest and pay only the minimum payments, it will take you 11 years to pay payments, it will take you 11 years to pay off ($7,800 totaloff ($7,800 total

SPENDING LEAKSSPENDING LEAKS

1 cup of coffee = $1.931 cup of coffee = $1.93 1 cup everyday for one week = $13.511 cup everyday for one week = $13.51 1 cup everyday for year = $702.521 cup everyday for year = $702.52

Add a donut to the equation = $752.00 yearAdd a donut to the equation = $752.00 year

Grand TotalGrand Total of $1,454.52 a year of $1,454.52 a year

For one month keep track of every penny you spend. For one month keep track of every penny you spend. You’ll be shocked to see where your money goesYou’ll be shocked to see where your money goes

THE DEBT SNOWBALLTHE DEBT SNOWBALL

ItemItem PayoffPayoff Min PaymentMin Payment New PaymentNew PaymentPenny’sPenny’s $150$150 $15$15 $0$0SearsSears $250$250 $10$10 $25$25VisaVisa $500$500 $75$75 $100$100MCMC $1,500$1,500 $90$90 $190$190CarCar $4,000$4,000 $210$210 $400$400BoatBoat $4,000$4,000 $465$465 $465$465HouseHouse $70,000$70,000 $700$700 $1,165$1,165Total $80,400Total $80,400$1,565$1,565

11 years TOTALLY DEBT FREE11 years TOTALLY DEBT FREE

CHECK SPENDING HABITSCHECK SPENDING HABITS

DO YOU…DO YOU…- Make a shopping list- Make a shopping list- Plan how much you can spend- Plan how much you can spend- Buy only items on the list- Buy only items on the list- Compare prices and quality- Compare prices and quality- Decide what each family member needs to - Decide what each family member needs to do to help control spending do to help control spending

- Use coupons- Use coupons

DECREASE EXPENSESDECREASE EXPENSES Pay cash and put credit cards awayPay cash and put credit cards away Brown bag itBrown bag it Clip and use couponsClip and use coupons Refinance your mortgage for a lower rateRefinance your mortgage for a lower rate Bundle insurance policies with one Bundle insurance policies with one

companycompany

IN ORDER IN ORDER TO GET OUT TO GET OUT

OF DEBTOF DEBTQUIT QUIT

BORROWING!BORROWING!

WEBSITES OF INTERESTWEBSITES OF INTEREST www.choosetosave.orgwww.choosetosave.org www.thesimpledollar.comwww.thesimpledollar.com www.aarp.org/money www.aarp.org/money www.ehow.com www.ehow.com www.cashmoneylife.com www.cashmoneylife.com www.billeater.com www.billeater.com www.66ways.org www.66ways.org www.moneymanagement.org www.moneymanagement.org www.ftc.gov  www.ftc.gov  

MAKE A NEW STARTMAKE A NEW START

Recognize “triggers” that lead you to spendRecognize “triggers” that lead you to spend Think of your goals/consequences before Think of your goals/consequences before

you spendyou spend Learn to say Learn to say “NO”“NO” Set up incentive plan for goals reachedSet up incentive plan for goals reached Pay cash Pay cash Reduce waste and save moneyReduce waste and save money Make your spending plan become a habitMake your spending plan become a habit

FREE CREDIT REPORTSFREE CREDIT REPORTS

View your credit report online. You can also dispute an item in your credit report and protect yourself from identity theft.

www.equifax.com www.experian.com www.transunion.com

Presented by:Presented by:Northern Employee Assistance ServicesNorthern Employee Assistance Services

The Marcy BuildingThe Marcy Building167 Polk St167 Polk St

Watertown, New York 13601Watertown, New York 13601315-788-4790315-788-4790

1-877-EAP-NEAS 1-877-EAP-NEAS www.neaseap.org www.neaseap.org