Summit Branches are conveniently located in Rochester (8), Seneca Falls (1), Buffalo (2), Syracuse (5) and Cortland (2) Money Management 101 - A Guide to Smart Budgeting Presented by The Summit Federal Credit Union
What you will learn today Setting Financial Goals Get Organized! Review your Spending Habits Building Your Own Budget How to Maximize your $$ How Credit Affects Us
Setting Financial Goals Regardless of what life stage you are in, you are likely to have some short and long term personal financial goals. Setting tangible and realistic goals, following them, and tracking your progress is the key to success in achieving all of your financial goals. Flexibility is key!
What are YOUR Goals? A Goal is defined as: an object of a person s ambition or efforts; a desired result a person envisions, plans and commits to achieving Your goals are your opportunity to decide what you want to do with your money They are the What s, When s and How s for you and should include short, midrange and long term goals
Choosing YOUR Goals Whatever your goals may be they need to be YOURS Buying your first home Saving for a dream vacation Buying a new car Set a specific $$ amount to save Prioritize your goals and make them measurable Break it down into small bites; they have to be attainable and realistic
Get Organized!! Organization is the key to efficient money management Designate a dedicated Personal Money Space Have the right Tools Simplify and streamline your finances Monitor your finances (checking acct. activity, bills etc.) on a regular basis
Stop Frittering Your Money Away
Cutting Spending Waste Track your daily spending using: Use your financial institution s Smart Phone App Online Banking and Online Bill Payment Use software and web applications such as Mint.com, Easy Money, or Level Money to make budgeting easier Use Debit cards Keep your receipts Monitor and limit your ATM usage Examine your findings sort it all out
Building YOUR Budget Budget Building Steps Gather your financial information; monthly financial statements, pay stubs, bills etc. Complete the Money Management Planner provided in your folders (Homework) Don t forget about debt (long & short term) Prioritize your expenses Include your savings goals Identify where you can make changes
Beat the Budget Busters! Sticking to a budget can be challenging! Identify your monthly expenses and label Want vs. Need Decide what to eliminate or minimize (phone bills, cable, eating out/socializing) Plan your meals, make a list and shop wisely Use debit cards
Think Before You Buy! Think BEFORE you buy, become an educated consumer. Charge purchases ONLY when you can afford to pay them back in a timely fashion Revisit your budget regularly Have someone who supports and encourages you to stick to it! Reward your efforts as you reach your goals
Saving Money Pay yourself first You need enough money to live on Set your goal How much should you save? How much should you invest? Find ways to set aside this cash on a regular basis by starting small and increasing as you can
Saving Money (cont) Having an Emergency Fund eliminates having to borrow money should a financial crisis arise Financial advisors recommend 6 months worth of income saved for a rainy day 50% of Americans have less than one month s worth of income saved for a rainy day
Make Saving Money Easy! Use automatic transfers Save a portion of each raise you receive Deposit bonuses, tax refunds and cash gifts Contribute to your company s 401K/403b Once you pay off debt (car loan etc.) keep depositing those funds into a savings account so you can earn dividends
Did You Know? 76% of Americans families currently are living paycheck to paycheck The personal savings rate in the United States has dropped from 8 percent in the 1980s to just under 2 percent today 64% of people surveyed admit that debt is a cause of worry for them although men worry less about it than women
How Credit Affects Us Good use of credit when you re young helps you to purchase a home, car etc. when you re ready Bad use of credit can affect us emotionally, physically and financially for many years 50% of people have no idea what their personal credit score is
Using Credit Wisely Keep close watch on your spending Beware of building credit out of impulse Use your credit cards/credit wisely limiting how many cards you use Know your limits & keep your balances low Pay off your credit card(s) monthly, avoiding interest paid on balances - paying the minimum amount due monthly can add months/years to paying it off
Tips to Financial Health Track and monitor your spending Expect the unexpected Have open communication in your household Accept that you can t buy everything Utilize a FSA and/or an HSA account at work Save Save SAVE! Get professional help as soon as you need it!
Balance - Financial Fitness Program Helps Summit Members achieve their financial goals through free and confidential financial counseling programs (tools, information and assistance) 1-888-456-2227 Visit balancepro.net
Questions?