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FINANCE, It’s a Personal Thing ! PowerPoint Presentation
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FINANCE, It’s a Personal Thing !

FINANCE, It’s a Personal Thing !

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FINANCE, It’s a Personal Thing !

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  1. FINANCE,It’s a Personal Thing ! WHICH WAY IS NORTH ?

  2. TIME IS MONEY $$$

  3. BEN AND ARTHUR---BOTH SAVE AT 12% PER YEAR! BEN STARTS AT AGE 19 AND ENDS AT AGE 27 ARTHUR STARTS AT AGE 27 AND STOPS AT 65 AGE BEN RETURN ARTHUR RETURN 19 2000 2,240 0 0 20 2000 4,749 0 0 21 2000 7,558 0 0 22 2000 10,706 0 0 23 2000 14,230 0 0 24 2000 18,178 0 0 25 2000 22,599 0 0 26 2000 27,551 0 0 27 0 30,857 2000 2,240 28 0 34,560 2000 4,749 29 0 38,708 2000 7,558

  4. RETURN ARTHUR RETURN AGE BEN 60 0 1,298,83 2000 861,317 61 0 1,454,69 2000 966,915 62 0 1,629,26 2000 1,085,18 63 0 1,824,77 2000 1,217,64 64 0 2,043,74 2000 1,366,00 65 0 2,288,99 2000 1,532,16 ...AND HE NEVER CAUGHT UP!

  5. 18% interest is not 3 times better than 6% interest!

  6. $1,000 one time investment, no withdrawal Age 25 to Age 65 (40 years) 800000 700000 600000 500000 400000 300000 200000 100000 0 18% 12% 6% 18% = $750,378 12% = $ 93,050 6% = $ 10,285

  7. Money Management Strategy: Financial Statements and Budgeting

  8. Long Term Save and Invest Future Income Lost Interest

  9. Major Money Management Activities Storingandmaintainingpersonalfinancialrecordsanddocuments. Creatingpersonalfinancialstatements(balancesheets andcash flowstatements of income and outflow). Creating and implementing a plan for spending, and saving (budgeting). 3-4

  10. Report Measure Maintain Provide

  11. Assets Liabilities Assets – Liabilities Net Income Fixed & Variable

  12. Future Emergency Fixed Variable Variances Flexible

  13. “Baby Steps” Step One: $1,000 in an “Emergency Fund” Step Two: Pay off all debt (except the house) utilizing the “ Debt Snowball” Step Three: 3 -6 months expenses (necessities only) in savings

  14. “Baby Steps” Step Four: Invest 15% of Household Income into ROTH IRA’s and Pre-tax retirement plans Step Five: College Funding Step Six: Pay-off Home Early Step Seven: Build Wealth! (Mutual Funds/ Real Estate)

  15. Written Cash Flow Plan Will and/or Estate Plan Debt Reduction Plan Tax Reduction Plan Emergency Funding Retirement Funding Charitable Giving Life Insurance Health Insurance Disability Insurance Auto Insurance Homeowners Insurance MAJOR COMPONENTS OF A HEALTHY FINANCIAL PLAN Teach My Children

  16. IAMNOWHERE I AM NOWHERE I AM NOW HERE