Money for Life Money is for life, not just for now!
Post on 21-Jan-2016
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Money for LifeMoney is for life, not just
for now!
All I could think about was landing my first job. I wouldn’t have to worry about money! I could finally buy what I wanted, when I wanted, so I did. I filled my apartment with all the things I had been dreaming of, including a to-die-for new wardrobe.
I wasn’t prepared when my apartment building burned down one day when I was at work, and I lost everything. Did I have renter’s insurance? No.....I didn’t think it could happen in a million years! Now I tell everybody, “Don’t just think about today. Think about tomorrow.”
Real Life, Real Money
Money for all life’s stages
Choices, decisions, events
The money in your lifeFinancial organization
Today’s Wi$eUp Topics
You will pass through many life stages.
Women’s financial lives are impacted by their relationships to others Spouses Children Parents
Traditional and nontraditional lifecycle patterns.
Money for all life’s stages
Choices and decisions Conscious and deliberate decision-making
Unplanned life events When life hands us a curve ball!
They impact our financial security throughout the life span.
Choices, Decisions, Events
Education and trainingCareer/job/workplaceWork and familyFinancial goals, choices and decisions
Choices vs. Unplanned Events
It is impossible to predict the future, but by thinking about it, you will be in a better position to set financial goals. Mary thinks about the futureYou nowYou in 10 – 20 years
Think About It
Each age and stage has unique financial tasks
Time is on your side Act on your financial goal at a young age
The Power of Compounding
The Power of Compounding2
Years 4% APR 6% APR 8% APR 10% APR
10 $1,481 $1,791 $2,159 $2,594
20 $2,191 $3,207 $4,661 $6,728
30 $3,243 $5,743 $10,063
$17,449
Label your LifelineLEFT: your birth yearRIGHT: your death ageYour age TODAY in relation to the lineThe years you will:
Change jobs, buy a car, marry, have a child, send your last child to college, pay off your mortgage
Turn 67 and 85
Lifelines and Life Stages
Salary/wages vs. compensation
Occupational Outlook Handbook www.bls.gov/oco
Compare overall compensation, not just your salary offer.
The Money in Your Life
Employee Benefits Retirement Plans
Defined–benefit plans Defined-contribution plans
“Don’t leave money on the table!” How long will it take to become
“vested”?
The Money in Your Life, continued
Other sources of income Your own a business/entrepreneurship U.S. Small Business Administration's Online
Women’s Business Center at http://www.sba.gov
Investments When you divert money from current earnings to
your savings and investments, you have essentially “instructed” that money to go out and “get a job and earn some money”!
The Money in Your Life, continued
Carol had always budgeted her money carefully. Sheknew how she spent every dollar. That was the problem – her budgeting was based on how to SPEND her money, not how she would MANAGE her money.
After attending a Wi$eUp program, she reworked her budget to contribute more to her retirement plan at work. Now she won’t be the only earner – her retirement money will be earning money for her, too.
Real Life, Real Money
The Money in Your Life, continued
Compensation and Other Sources of AssistanceDual-earning couplesAlimony and child supportTemporary Assistance
Disability Insurance Unemployment insurance Federal, State, or Local forms of Assistance
Earned Income Tax Credit
Physical organization of papers The electronic world
Account numbers and PINs record Up-to-date firewalls Electronic accounts record
Financial Organization
Organization of data/information Straighten Up Your Files and
Records Complete the Credit and Debit Card
Safety Record Complete the Vital Documents
Inventory Complete the form, My Electronic
Accounts, Passwords, and PINs.
Money For Life Check List
Create a Financial CenterEstablish a filing system Decide How to organize your electronic files
Shred Paper copies with personal information
Money For Life Check List, continued
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