onein3 money 01 20 10

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ONEin3Money.org ONEin3Money ONEin3Money Jennifer Lane CFP Jennifer Lane CFP [email protected] @jennplane @jennplane

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ONEin3 Boston, an initiative founded by Mayor Thomas M. Menino at the Boston Redevelopment Authority, connects young adults with resources, with city government and with each other. Thirty-three percent of residents in the City of Boston are between 20-34 years old. This integral demographic represents today’s workforce and consumers, and tomorrow’s professional and civic leadership. ONEin3 Boston seeks to make the City an attractive, long-term home by studying the issues that are important to them and acting upon those findings.

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Page 1: OnEin3 Money 01 20 10

ONEin3Money.org

ONEin3MoneyONEin3Money

Jennifer Lane CFPJennifer Lane [email protected]

@jennplane@jennplane

Page 2: OnEin3 Money 01 20 10

ONEin3Money.org

Jennifer Lane CFPJennifer Lane CFP

[email protected] NECN, Tuesdays at 5:00, 6:30 and NECN, Tuesdays at 5:00, 6:30 and

8:30 pm8:30 pm Author: The Complete Idiots Guide Author: The Complete Idiots Guide

to Protecting your 401(k) and IRAto Protecting your 401(k) and IRA Jenniferscompass.typepad.comJenniferscompass.typepad.com @jennplane@jennplane

Page 3: OnEin3 Money 01 20 10

ONEin3MONEYONEin3MONEY

Smart Budgeting and Goal SettingSmart Budgeting and Goal Setting Paying off Credit Card/Student Loan Paying off Credit Card/Student Loan

DebtDebt Improving Your Credit ScoreImproving Your Credit Score Home buyingHome buying Retirement PlanningRetirement Planning Frugal Living in a Fun CityFrugal Living in a Fun City

ONEin3Money.org

Page 4: OnEin3 Money 01 20 10

ONEin3Money.org

Smart Budgeting and Smart Budgeting and Goal SettingGoal Setting

Prioritize and write down your Prioritize and write down your goalsgoals

Plan Monthly Money MeetingsPlan Monthly Money Meetings Set-up Money Baskets for direct Set-up Money Baskets for direct

depositdeposit Track your spending – MINT.com Track your spending – MINT.com

Page 5: OnEin3 Money 01 20 10

Your QuestionsYour Questions

How do you save when you have How do you save when you have nothing?nothing?

How to afford to attend school when How to afford to attend school when a loan doesn't cover the entire cost.a loan doesn't cover the entire cost.

How much should a person pay for How much should a person pay for rent? I feel like rent costs here are rent? I feel like rent costs here are way more than my salary allows.way more than my salary allows.

ONEin3Money.org

Page 6: OnEin3 Money 01 20 10

ONEin3Money.org

Paying off Credit Paying off Credit Card/Student Loan DebtCard/Student Loan Debt

Use 2 to 3 cards maxUse 2 to 3 cards max Check credit report Check credit report

www.AnnualCreditReport.com Drop all credit cards with feesDrop all credit cards with fees Pay credit card balance each paydayPay credit card balance each payday

Page 7: OnEin3 Money 01 20 10

ONEin3Money.org

Snowflake your SavingsSnowflake your Savings

Snowflakes Snowflakes are small, are small,

but they add but they add up quicklyup quickly

Collect and Collect and deposit once a deposit once a weekweek

Page 8: OnEin3 Money 01 20 10

ONEin3Money.org

Lunch – 25 minutes and Lunch – 25 minutes and $6.99 per month$6.99 per month

Page 9: OnEin3 Money 01 20 10

ONEin3Money.org

Snowball your DebtSnowball your Debt

Pick a fixed Pick a fixed monthly amount…monthly amount…keep it rolling keep it rolling towards your debt towards your debt until everything is until everything is paidpaid

Page 10: OnEin3 Money 01 20 10

ONEin3Money.org

Your Debt SnowballYour Debt Snowball

Smallest account Smallest account firstfirst

Then pay all down Then pay all down to 50% of the limitto 50% of the limit

Then all down to Then all down to 35% of limit35% of limit

Then focus on Then focus on highest interesthighest interest

Page 11: OnEin3 Money 01 20 10

ONEin3Money.org

Improving Your Credit Improving Your Credit ScoreScore

Pay on timePay on time Pay bill from the credit card site; Pay bill from the credit card site;

Not from bill payNot from bill pay Keep balances below 35% Keep balances below 35% Mix of credit accounts – utilities, Mix of credit accounts – utilities,

credit card, loanscredit card, loans Free score CreditKarma.comFree score CreditKarma.com

Page 12: OnEin3 Money 01 20 10

Your QuestionsYour Questions

How to get first credit cardHow to get first credit card Recommendations on credit cards Recommendations on credit cards

that are "better" than others in that are "better" than others in terms of getting rewards and saving terms of getting rewards and saving money?money?

ONEin3Money.org

Page 13: OnEin3 Money 01 20 10

ONEin3Money.org

Frugal Living in a Fun Frugal Living in a Fun CityCity

PrioritizePrioritize Check withholding www.irs.gov Check withholding www.irs.gov Limit ATM to once per weekLimit ATM to once per week Always shop with a list Always shop with a list Limit housing to 30% of payLimit housing to 30% of pay ShoeStringMag.comShoeStringMag.com

Page 14: OnEin3 Money 01 20 10

ONEin3Money.org

Home buyingHome buying Better to buy – IF:Better to buy – IF:

Will live there 5+ yearsWill live there 5+ years Rent is greater than:Rent is greater than:

MortgageMortgage + condo + condo

fee/maintenancefee/maintenance + real estate taxes+ real estate taxes - mortgage interest - mortgage interest

savingssavings if planning move within if planning move within

7 years, calc cost to 7 years, calc cost to sellsell

Boston Home Center Boston Home Center for info and programsfor info and programs

Page 15: OnEin3 Money 01 20 10

ONEin3Money.org

Retirement PlanningRetirement Planning

Ok to start smallOk to start small Open a Roth IRAOpen a Roth IRA www.Morningstar.com for mutual www.Morningstar.com for mutual

fund infofund info Use no-load Target Date FundsUse no-load Target Date Funds How is your broker compensated?How is your broker compensated?

Page 16: OnEin3 Money 01 20 10

ResourcesResources

AnnualCreditReport.comAnnualCreditReport.com Cityofboston.gov/dnd/bhc/ (Boston Cityofboston.gov/dnd/bhc/ (Boston

Home Center)Home Center) MINT.comMINT.com ShoeStringMag.comShoeStringMag.com Morningstar.comMorningstar.com JennifersCompass.typepad.comJennifersCompass.typepad.com ONEin3Money.orgONEin3Money.org

ONEin3Money.org