Marsha Lockard, MS

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Marsha Lockard, MS Extension Educator Marilyn
Bischoff, MS Extension Family Economics
Specialist Linda Gossett, MPA Extension
Educator-EFNEP
College of Agricultural and Life Sciences
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mart pending
Luke Erickson
College of Agricultural and Life Sciences
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Nobody but can do it but YOU!

• Financial Freedom is never something that just
  happens to us.
• Big inheritance
• Win the lottery
• Big bonus
• It is something we must fight for.
• If it is to be, it is up to me! (William H.
  Johnsen)

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MONEY PERSONALITIES

• SPENDERS
• HOARDERS
• AVOIDERS
• AMASSERS
• MONEY MONKS

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Different Personalities

• Use your strengths
• The nerd can manage the numbers
• But the free spirit must have equal input.
• Cannot just nod and say whatever you think
  honey.

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Each has an equal vote.

• Communicate on a scheduled basis.
• Set goals
• May even want to bring kids into the decision
  making process.

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Activity

• What are your goals?
• Each person pull out a piece of paper
• List 5 things you could do with unlimited time
  and money
• Dream Big!
• Dont stop at 5! On your own time add to this
  list. Find out what it is you really want out of
  life.

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What would you do with
What if . . . (Close your eyes)
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Activity (Part 1)

• What are your goals?
• Each person pull out a piece of paper
• List 5 things you could do with unlimited time
  and money
• No monthly debt payments
• Car, student loan, credit card, mortgage.
  Nothing.
• You already have 6 months of emergency savings,
  adequate insurance, already save 10 of income
  for retirement.
• Kids future is already taken care of.

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Shoot for the Moon!

• Once you have your five goals - prioritize them.

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Goal Setting

• What is important to you and your family?
• Do your current spending habits reflect your
  family values
• Does your spending reflect, first see, first
  buy mentality?

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Some of my goals.

• Go to a Seahawks game
• Mt. Rushmore
• Washington DC
• Vacation to Australia
• Get a pilots license.
• Finish a cycling race.

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What are some of our goals and ambitions?

• Is your list different from your spouses list?
• Is it any wonder we fight about money?
• Different personalities, going different
  directions.
• WE ARE DIFFERENT!
• Is it possible to communicate and compromise?
  Ill help us save up for some furniture, if
  youll help us save up for a boat.

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Theres no such thing as NO!

• When you communicate and work together theres no
  such thing as no! Its only a matter of when.
• But you do have to agree
• Is it a priority?
• Is it fair?

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SMART GOALS

• Specific
• Measurable
• Agreed upon
• Realistic
• Timed

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What is A Financial Plan?

• Its about reaching your goals!

• Building a financial plan around your goals, is a
  way to get and stay motivated.

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Steps to Financial Freedom
1. Spend Less Than You Make. 2. Prepare for
Financial Emergencies 3. Become Debt Free 4.
Prepare for Retirement 5. Teach Kids About
Money 6. Pay Off Your Home Early 7. Build a
Legacy  
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Spend Less Than You Make!

• What is a budget to you?
• A four letter word.
• Something that Ive tried, but cant follow.
• Something that limits my fun.
• Something that limits my freedom.
• A tool?
• A tool that helps you spend less than you make.
• A tool to help you achieve you goals.

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A budget

• A budget can be anything you want it to be, as
  long as it works, and you know for a fact that
  you spend less than you make every month.
• A budget is knowing where your money has been so
  that you can tell it where to go.

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Life is what happens while youre busy making
other plans! John Lennon
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FIND OUT WHERE IT GOES
Tracking

• Receipt
• Envelope
• Notebook/
• Calendar
• Checkbook register
• Computer

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Receipt Method

• Keep all receipts if you do not get one, make a
  receipt
• Put receipts in a box, envelope, or other
  container

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Envelope Budgeting

• Label envelopes with category, amount and date
  due
• Divide cash into envelopes
• Save unused money

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Calendar or Notebook Method

• List income on the date received
• Write in bills and expenses on date due
• Mark off bills as they are paid

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Checkbook Method

• Use checks or debit card for all bills
• Record check or debit card transaction in check
  register
• Total all spending categories at the end of each
  month

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Computer Method

• Use personal finance software or a spreadsheet
• Regularly enter transactions in categories

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Tracking is the only way you will know!

• After tracking for a month you can
• Categorize your purchases
• Set target amounts
• Separate your needs from your wants
• Communicate about how to reduce expenses, reach
  goals.

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When should you stop tracking?

• The majority of millionaires track their expenses
  every month and use spending goals.
• Do you want to join the club?
• If so, thats a pretty small price to pay.

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Millionaire Next DoorThomas J. Stanley William
D. Danko

• The majority of Americas Millionaires
• Tracking and spending plan.
• Drive used cars.
• Own modest homes, but are completely paid for.
• Have savings for emergencies.

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So . . . .youve tracked and found that youre
coming up short.

• What can you do?
• Theres really only two choices.
• Decrease expenses
• Increase income

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Decrease Expenses

• Pay bills on time
• Barter services with friends
• Buy generic or store brands
• Combine shopping trips to save time and money
• What else can you think of?

EXPENSES
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Separate Needs Wants

• Needs are necessary to live
• Without them we may jeopardize our health, safety
  or well being.
• Wants are the things that make our lives more
  comfortable and more enjoyable.
• Wants are limitless.
• Before making a purchase ask yourself
• Do I need it?
• Is it my 1 want?

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Needs

• Utilities and services
• Insurance payments
• Groceries
• Transportation
• Home/shelter
• Debt payments

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Wants

• Vacation
• Piano
• Plasma TV
• Nearly all Clothes
• Most cars
• Most homes

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Activity

• Separate Needs and Wants

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What would you do with
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But many of us already spend this way.

• Spending leaks
• Giving up what you REALLY want, for something you
  just sort of want right now.

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Spending Leak Example

• Lin
• Cupcake twin pack .95
• Bag of potato chips .70
• Can of pop .60
• Every day 2.25
• Every five days 11.25
• Every four weeks 45.00
• Every year 585.00!

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Step Down!
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Activity

• The Case of the Missing Money

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Avoid Impulse Spending

• Spending Cards

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Increase Income

• Volunteer to work overtime
• Rent an unused bedroom or garage
• Have a yard sale
• Sell stuff online
• Get a second job
• What else can you do?

INCOME
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Maximize Non-Money Income

• Fringe Benefits from Employers
• Do-It-Yourself Projects
• Barter Exchange
• Other ideas?

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BEAN GAME
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Spend less than you make!

• The whole point is to be able to save!
• Until you can save a little money every month,
  youll never get ahead.