Download Your Financial Wellness

YOUR
FINANCIAL WELLNESS
A great way to help you have a better relationship with your money.
SKILLS AND STRATEGIES
- WAYS TO HELP YOURSELF BE MORE CARFUL WITH YOUR MONEY
• Knowing how to manage your money
• Use credit cards wisely
• Staying out of debt
• Meeting your financial obligations
• Having long-range financial plans
• Emotional relationship with money
• Learn to budget
• Using self-discipline to live with your means
• saving
LEARN TO BUDGET
• A budget is a way of tracking where
your money goes and making sure
you’re spending it on the things that
are most important to you.
- Record your daily spending with
anything that's handy, whether it's
with a pen and paper or an app on
your smartphone.
- Plan for next month's expenses and
income so you don't get taken by
surprise. ...
- Look for ways to spend less.
- Spend on what you want or need
only if it doesn't go over budget.
HOW TO BUDGET
Step 1.
Assess your financial situation.
• It's a lot easier to budget when you
have actual money to budget with.
Take this simple approach to help
keep a little more in your wallet.
• WAYS MONEY COMES IN
- Your paycheck, Family and friends,
Savings and Other (alimony, child
support, etc.)
• WAYS MONEY GOES OUT
- Rent or mortgage, Food, Utilities,
Clothing, Transportation, Insurance,
Student loans, payments, Other debts,
Miscellaneous expenses, and Savings
HOW TO BUDGET
Step 2.
Identify needs vs. wants.
• Take a look at what you have or
want and determine what you
can't live without. As hard as it is,
you may need to give some things
up.
• NEEDS
- Food, Clothing, Shelter, Medical/dental
visit, Prescriptions, etc.
• WANTS
- Computer, internet, Car, Cell phone,
Cable television, Movies, entertainment,
Pets, etc.
HOW TO BUDGET
Step 3.
Understand your financial
behaviors.
• Only by identifying your spending
habits can you find budgeting
strategies that work for you.
• Financial Behavior
- Impulse buying, Buying name-brand,
Not knowing where the money goes,
Spending your entire paycheck
• Budgeting Strategy
- Put yourself on an allowance, Keep
track of your spending, Use direct deposit
to save
HOW TO BUDGET
Step 4.
Create your budget.
• Creating a budget is nothing more
than simple math. Once you
deduct your expenses from your
income, you'll know how much you
have left to spend on your "wants."
BE WARY OF CREDIT CARDS
- WAYS TO HELP YOU BE CAREFUL WITH CREDIT CARDS
• Credit Cards can lead you to being
in debt. You must be careful with
credit cards when it comes to
buying.
• Just have one credit card
• Spend within your means
• It is vital that you understand the
following terms:
• Grace period (the number of days
you have to pay your bill before
interest, late fees, or other penalties
are charged).
• Minimum payment (the smallest
payment your creditor will accept
each month).
GET OUT OF DEBT
- WAYS TO STAY OUT OF DEBT
• Being in “debt” means owing
someone money. Usually, when
people talk about being "in debt"
they are referring to the state of
owing somebody money over a
period of time - such as a mortgage
or a car loan. Then there is being
"seriously in debt" which is the state
of having payments that bump up
against or exceed your disposable
income.
• Stop using your credit cards when
you already owe too much
• Try to pay more than just the
minimum of monthly payments
• Keep track of your money every
time you pay with credit
• Understand the interest of monthly
payments
• Save money for other important
uses
• Cut back on spending habits
START SAVING
- WAYS TO SAVE
Why is saving important?
- We save, basically, because we
can't predict the future. If we could,
we would know precisely know how
much money we would need for the
things that we want and need in the
future. But because we can't do this,
the need to save money for the
future is vital.
• Cut back on spending habits
• Set up a Savings account with your
bank
• Put in a minimum amount of money
into your savings soon after you get
paid from your job.
• Keep track of your purchases and
keep the receipts after a purchase
• When saving you can set up plans
like retirement, vacation, hobbies
etc..
BECOMING FINANCIALLY LITERATE
• This means understanding
everything from basics like
balancing a checkbook to more
sophisticated endeavors like
developing a long term financial
plan.
DIFFERENCES OF FINANCIAL
WELLNESS
• EDUCATED PEOPLE
• NON-EDUCATED PEOPLE
• Have more opportunities and open
doors.
• May struggle financially
• Make more money
• Likely to be poor with communication
• Having an education allows you to
work in a field that you enjoy
• Less successful
• Less money
• More knowledge
• Not very many opportunities and
advantages
• Successful
• May have a job you dislike
REFRENCES
• http://www.youcandealwithit.com/borrowers/managing-money/how-tobudget.shtml
• http://www.creditcards.com/credit-card-news/tanisha-warner-closingcredit-cards-fico-score-mortgage-1581.php
• RDG 990 TEXTBOOK Section 9.2
• Noel Lopez, Jonathan Lopez, Kimberly Ann Mostacero and Eva Palacios