BE AWESOM E NOT BROKE By Garrett Philbin

Transcription

1 AWESOM E NOT BROKE By Garrett Philbin

2 WELCOME! YOU HOW WILL TO WALK FIND AWAY YOUR WITH WHY TOOLS TO HELP YOU BE AWESOME AND NOT BROKE OVERCOMING OBSTACLES RESOURCES

3 Money: Not Just About The Numbers Emotions: Fear, Resentment, Guilt, Stress Culture: More Is Better Psychology: Scarcity vs. Abundance Sense of Self: Net Worth = Self Worth Money is a tool to help us get what we want out of life. But first, we have to know what we want out of life.

4 And tables to compare data What is Your Why A B C Yellow Blue Orange

5 If you want a clear picture of your priorities in life, who you are and what you care about, look at your checkbook, your credit card bills and bank statement. - Lynn Twist, The Soul of Money

6 is Important to me is Important to me is Important to me

7 Exercise

8 The Tools To Get You There

9 Tool #1 AWARENESS Mental Accounting Real Accounting

10 Why Awareness is Foundational Awareness tells you what IS true, rather than what you BELIEVE is true. Awareness = Knowledge. No action can be taken without knowing the facts. The Devil You Know Is Better Than The Devil You Don t Awareness is the precursor to empowerment.

11 Exercise: review past income & expenses

12 Tool #2 Financial Goal Setting Now that you know where you are, let s look at where you want to go.

13 Financial Goal Setting Based on your goals/values/why, think about what you would like to have money to have, or to do, or to be: In six months (example: NYS drivers license) In 1 year (example: Move to new apartment) In 5 years (example: College or technical school) In 10+ years (example: Money to start a business) Sort them in terms of priority and timeframe

14 Make Them S.M.A.R.T.

15 Tool #3 Build A Budget A goal is about the future. A budget outlines the day-to-day work that will get you there. Don t worry, a budget doesn t have to be restrictive

16 Why this budget is different You can now build a values based budget You can put money towards the things that matter Freeing instead of restrictive You no longer have to give up things, you simply choose to spend elsewhere

17 Enter YNAB (You Need A Budget) Based on the Envelope System Gives every dollar a job Allows you to be Proactive Keeps you up-to-date on the go

18 Tool #4 Automation You are building good habits. Now let s make them automatic

19 Benefits of Automation You can start paying yourself first You no longer end the month with no money put away towards longer term goals It saves you from yourself by taking the decision making out of your hands

20 Automate Savings - Capital One 360 Savings Automate monthly transfers from bank Create up to 50 different accounts Physically moves your money - removes temptation

21 OBSTACLES

22 Credit Card Debt #1 obstacle keeping people from being Awesome and Not Broke Average person with credit card debt carries over $15,000 of it Average credit card interest rate is 15%! Many people pay the minimum balance, not knowing what it costs them over the long term. Let s take a look.

23 The True Cost of Credit Card Debt

24 The True Cost of Credit Card Debt

25 Getting out of credit card debt Create a budgeting framework to keep you honest and on track. Elizabeth Warren s 50/30/20 rule 50% for needs - rent/mortgage, groceries, car payments. 30% for wants - eating out, travel, concert tickets. 20% for savings - emergency fund, retirement, $$ towards credit card or student loan debt. Gives you a frame of reference for what is the right amount to shoot for.

26 Getting out of credit card debt It s about paying down debt while not hating your life There s no point in creating a plan that you won t be able to stick with for more than a few weeks. No Binge-Dieting If you feel your are depriving yourself, stop and re-evaluate Remember your Why. It won t be easy, but it shouldn t feel impossible. Track your progress and celebrate/reward yourself at meaningful debt milestones!

27 RECAP FIND YOUR WHY USE TOOLS TO HELP YOU BE AWESOME AND NOT BROKE IDENTIFY AND OVERCOME OBSTACLES

28 Resources Time Traveler Interview Past Income & Expenses Worksheet Credit Card Interest Calculator Credit Counseling - NFCC Student Loan Counseling - Jay Fleischmann

29 Thanks! Any questions? Garrett Philbin (805)