organize your finances

Download Organize Your Finances

Post on 22-Jan-2015



Economy & Finance

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  • 1. WHY BOTHER? Get control of your money You earn it, you should decide where it goes Money is #1 Cause of Arguments Avoid living paycheck to paycheck Save for the future Retirement, College, Home Prepare for the unexpected Death, Disability, Deployment 2

2. Creating Financial Goals Budgeting Spending Saving Investing Managing Your Risk Understanding Credit and Debt Protect Your Identity3 3. Short-Term 1 month to a year Vacation, gifts, paying off credit cards, etc. Mid-Term 1 year to 5 years Purchasing a car, remodeling, etc. Long-Term 5 years + Buying house, saving for college/retirement, etc. 4 4. Write them down! What will it cost? Dont forget inflation! What is your timeframe? Set a due date Prioritize by importance Track your progress5 5. 6 6. Track your spending Cut your expenses Review monthly Use Financial Software Quicken,Money,, etc. 7 7. Think before you make a purchase Control your emotions and impulsesS T R E T C H your money! What can you do without? Save $1000.00 Avoid convenience!8 8. Emergency Fund3to 6 months of your expenses A credit card is not an emergency fund! Save toward goals Remember to prioritize Pay yourself first!9 9. SocialSecurity?Use Tax ShelteredInvestmentsSave Early, Save Often10 10. Government-Sponsored RetirementPlan Pre-tax Contributions No Matching Funds for military 5 Mutual Funds Options Lifestyle Funds combination of all 5 mutual fund options Can contribute to both TSP andIRAs 11 11. What is an IRA? Who can have an IRA? What can be in an IRA? Stocks Mutual Funds Bonds Almost anything What is the most you canput into an IRA? What is the least you canput into an IRA?12 12. Protecting your income and assets Life Insurance Term vs. Whole life Disability Insurance Property and Casualty Insurance Autoand Home Owner/Renter insurance Umbrella Policy Long-Term Care Insurance 13 13. When is it ok to use debt? Education,car or home purchases, orwhen the benefit outweighs the cost When is it not ok? Impulse buys, day to day purchases,payday loans, paying one credit card withanother credit card Debt reduction strategy Create a plan and start today14 14. Pay bills on time! Contact your creditors Clean up old, bad debt Avoid debt consolidation companies Seek help from a Financial Counselor 15 15. Check your credit report every 4months www.annualcreditreport.comor 1-877-322-8228 Freeservice sponsored by TransUnion,Experian, and Equifax Look for errors and correct mistakes 16 16. How long should I keep financial documents? Keep copies wills, insurance policies, andother important documents in a safe depositbox or fire-proof safe. Shred your documents before you dispose ofthem. Make sure a loved one has the combination tothe safe and knows where the safe depositbox keys are located. Use Quicken or Money software 17 17. Identity theft Stealing your wallet or purse Stealing your mail Going through your trash Phishing through mail or email 18 18. 1. Place passwords on your accounts2. Close unused accounts3. Avoid carrying credit cards4. Safeguard your mail5. Safeguard your trash6. Beware of people who call your home7. Secure personal information at home8. Secure your computer 19 19. Contact the credit bureaus Experian (888-397-3742) Transunion (800-680-7289) Equifax (800-525-6285) Contact the creditor or bank Call the police Call the FTC at 1-877-IDTHEFT Visit 20