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Get a Grip on Your Money during 2012 and beyond

Get a Grip on Your Money during 2012 and beyond

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Get a Grip on Your Money during 2012 and beyond

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  1. Get a Grip on Your Money during 2012 and beyond

    1
  2. PowerPoint presentation

    Keri D. Hayes Extension Publications Assistant 2
  3. Marsha A. GoettingPh.D., CFP®, CFCS

    Professor & Extension Family Economics Specialist Department of Agricultural Economics & Economics 3
  4. Packet Provides tools & techniques that can help you become a more effective financial manager during 2011 & beyond 4
  5. Provided by MSU Extension Montana Credit Unions for Community Development First Interstate BancSystem Foundation 5
  6. MSU Check Register Tracking SystemTool # 1
  7. Register System Use to track expenses Checks Cash Debit Cards Credit Cards
  8. Front Cover
  9. Back Cover
  10. Category Descriptions
  11. Blank Page for Your Expense Categories
  12. Planned spending amounts (p. 2) Categories Food = $300 Housing = $590 Transportation = $360 Clothes Personal care = $120 Medical = $100 Recreation = $80
  13. Balance at a glance Far right column Checking account balance $300
  14. Example 1:
  15. Example 2: Recording Expenses
  16. Example 2: Record Expenses Check 511 to K-mart $9.06 listed twice Under personal care Checking account balance
  17. Example 2: Expenses Personal Care Category: $20.94 Checking Account Balance $290.94
  18. Example 3: Circle=Cash Box=Credit
  19. Example 3: Cash/Debit Card Items are circled $3.75 food $24.00 clothes $15.00 medical
  20. Credit Card Charges Items are boxed Credit Card expense 5/5 Auto Repair $130 Listed under Trans. & Credit Card Columns Total—Credit Card Column
  21. Example 4: Adding Expenses
  22. Rounding Round up or down in budget category section $9.06 = $9.00 $9.67 = $10.00
  23. Register Tracking System Check Cash Credit Debit
  24. Blank Register
  25. Evaluation Families found an average of $50 that used to “disappear.”
  26. Cost $1.00 No charge in packet thanks to sponsorship of: MSU Extension Montana Credit Unions for Community Development First Interstate BancSystem Foundation
  27. Track’n Your Savings GoalsTool # 2
  28. Handy tool Shows how totrack progress towards achieving specific savings goals All in one place
  29. Front Cover
  30. Back Cover
  31. What are you saving for? Savings Goals
  32. Decide on Amount Needed Figure2
  33. My Savings Goals Figure2
  34. Goal Categories & Amounts Figure 3
  35. Recording a Savings Deposit Figure4
  36. Recording a Deposit -- Split Among Goals Figure5
  37. Recording a Savings Withdrawal Figure6
  38. Sample Savings Register: 38
  39. Credit Cards 39
  40. “But Roger, everyone spends more than he earns. That’s what America is for.” 40
  41. Question What’s the average credit card balance owed by American households? 41
  42. Credit Card Balance… $14,687 42
  43. Question What is the average credit card interest rate? 43
  44. Average credit card interest rate 14.9%
  45. Question What percentage of credit card holders carry more than a $10,000 balance on their credit cards? 45
  46. Owe more than $10,000 37%
  47. Credit Card Smarts Slide Calculator Tool #3 47
  48. Credit card annual interest rate assumed by Credit Smarts Calculator 18.0%
  49. Credit card monthly interest rate assumed by Credit Smarts Calculator 1.5%
  50. Paying Just 3% on Your Credit Card Debt Check the REAL cost Orange Side: Side 1
  51. Blue Side: Side 2 Pay MORE than 3% and Save a LOT
  52. Matt & Julie $10,000 Credit Card Debt
  53. Pay back: $19,421 Interest Charges: $9,421 Years to pay off: 20 Orange Side: Side 1
  54. $10,000 debt $300 first payment 20 years in debt $9,421 interest paid Blue Side: Side 2
  55. Blue Side: Side 2 $10,000 debt
  56. Credit Card Tracker Tool # 4 56
  57. Ask yourself questions: Do I really need the item now?
  58. Ask questions What will I have to give up to pay this debt?
  59. Personal limits for using credit: ????? ????? ?????
  60. Record of Card Expense Date Description of charge Amount charged
  61. Credit Card Trackerinside
  62. Schedule of Non-monthly Living Expenses Tool #5
  63. Purpose Provide clear picture of how your non-monthly payments are distributed throughout a 12-month period
  64. Example--page 3 Car insurance is due? Property taxes are due? Total payments in Nov? Yearly cost for newspaper?
  65. Non-monthly Expenses Total yearly cost of non-monthly expenses? $5,153 Monthly set aside amount? $429.42
  66. Back of MontGuide Blank form for you to use
  67. Eastern Montana Couple “Line 1 is our family fixed expenses, Line 2 is our family income, The difference is the fix we’re in.”
  68. “I tried living within my income once & got claustrophobia.” MSU non traditional student
  69. Question often asked How much “should” be spent for family living expenses?
  70. Marsha’s Response Well, It depends..
  71. Available Income Number of Family Members Stage in Family Life Cycle Rural vs. Urban Family/Individual Values Factors
  72. Developing a Spending PlanTool #6

  73. Guidelines from Bureau of Labor Statistics

  74. Consumer Expenditure Survey – 2008Percentages by category
  75. Annual Income Across top Less than $5,000 $70,000 & over
  76. Average Expenditure Categories, after taxes Food at home Food away from home Housing Apparel & services Transportation
  77. Average Expenditure Categories, after taxes (con’d.) Health Care Entertainment Education/Reading Contributions Personal Care Other
  78. Question: What is the average amount before taxes does family with income of between $40,000 & $49,999 spend on transportation?
  79. $40,000 - $49,999 Transportation $6,393
  80. Question: What does family with income between $50,000 & $69,999 income spend annually on food at home?
  81. $50,000 - $69,999 Food $3,755 $313 monthly
  82. Tool #7

    Using a Homestead Declaration to Protect Your Home From Creditors

  83. Question What is the $$ amount of equity in your home that a Montana Homestead Declaration (if recorded) protects against most creditor claims?
  84. Montana Homestead Declaration

    $250,000
  85. What is a Homestead? House, condo, townhouse, manufactured or mobile home Land on which it sits (if owned) Any improvements, fences, etc.
  86. Married Couples Both spouses should sign the declaration Must be notarized
  87. Record Clerk and Recorder’s office: In the county where the home is located
  88. No Protection Against liens
  89. Doesn’t protect Equity in home if owner’s cost of care Were paid by Medicaid
  90. Standard Form MSU Extension: www.montana.edu/extensionecon/financialmgtpublications.html
  91. Montana Medical Care Savings Accounts

    Tool #8
  92. What is an MSA?

    An account that can be used for paying eligible medical expenses not covered by a Montanan’s health insurance policy, Flexible FSA, Federal Health Care Savings Account (HSA)
  93. MSA Contribution Amounts: Maximum $3,000 for each taxpayer $6,000 married couple
  94. MSA Saves on Montana Income Taxes Contributions: Not subject to Montana income tax Taxes saved depend on tax bracket
  95. Taxable Income Adjusted income $ 29,000 MSA deposit - $3,000 Taxable Income $26,000
  96. Tax Brackets & Rates Montana- 2011 www.mt.gov/revenue
  97. Tax Savings with MSADeposit: $3,000 Taxable income more than $15,600 6.9% tax bracket MSA Deposit $3,000 Tax Bracket x .069 $207 Tax Savings
  98. Regular savings accountDeposit: $3,000 Taxable income more than $15,600 6.9% tax bracket Savings Deposit $ 3,000 Interest Rate x .0001 .30 earnings
  99. Reduced Income for Taxes Total deposited in MSA Not amount withdrawn
  100. Example: Barbara January 31 $3,000 deposited in MSA Only $2,000 eligible medical expenses during year
  101. Barbara’s Montana Income Reduced by $3,000 Not $2,000 Adjusted income $ 32,000 MSA deposit - $3,000 Taxable Income $ 29,000
  102. Reporting Schedule II: Montana Subtractions from Federal Adjusted Gross Income Line 18: Exempt Medical Care Savings Accounts Deposits and Earnings
  103. Percent of Montanans with MSAs

    1.4%
  104. Managing Money in Tough Times

    Tool #9 Check those you would like to receive
  105. Family Financial Management Publications

    Tool #10 Other materials that may be of interest
  106. Get a Grip on Your Money during 2012 and beyond