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It's Going to Cost What to Live Off Campus????? Presented by Lauren E. Pigott Green River Community College & Micheal K. Seraphin Willamette University.

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Presentation on theme: "It's Going to Cost What to Live Off Campus????? Presented by Lauren E. Pigott Green River Community College & Micheal K. Seraphin Willamette University."— Presentation transcript:

1 It's Going to Cost What to Live Off Campus????? Presented by Lauren E. Pigott Green River Community College & Micheal K. Seraphin Willamette University NWACUHO 2011 – Vancouver

2 Goals of the Program Interactive Active Participation –Discussion –Sharing of experiences Walk away with a plan In the old days a man who saved money was a miser; nowadays he's a wonder. ~Author Unknown

3 About Us Left first live-on job before finding a new one Huge credit card debt when between jobs Recovering shopaholic Recently paid off huge debt Inspired by colleagues

4 About Us Lived on for 5 years, and while I currently live off campus, I live in University owned house, but paying rent. Doing my part to help the economy Enabled by my parents - Money is no object Strings attached Got tired of STUFF

5 All About You…Part I Why did you attend this session? What are your financial goals? What do you want to learn more about?

6 Whats the big secret? Sorry, I cant go, I am saving for a vacation. How much do I take home each pay period? Maybe another time, I am working to lower my debt.

7 Build a Budget Determine your priorities: -Putting money in the bank vs. -Paying off debt Choose something you will use!

8 Tips from Gail Vaz-Oxlade 1-Gather all your paperwork 2-Use your online banking wisely 3-Save automatically 4-Create a monthly bill summary 5-Make a date with your money 6-Talk about your highs and lows

9 Budget Template Housing35% Life25% Debt15% Transportation15% Savings 10%

10 Laurens adjusted template WeeklyBi-WeeklyMonthly Life35% Debt25% Transportation5% Savings35% % Housing35% Life25% Debt15% Transportation15% Savings 10%

11 Do the math What will work for you? What are your fixed expenses? Housing35% Life25% Debt15% Transportation15% Savings 10%

12 Still not sure? Look at your spending from the last couple of months…. Where did it all go? Build your budget around your real spending.

13 Groceries Restaurants Entertainment Clothing & Gifts amount date amount date amount date amount Walmart48.45 Greek18.88 Regal Cinema15.00 Kohls Walmart32.60 Arbys12.01 JANUARY total15.00 Amazon40.69 Trader Joes42.16 Wendys3.62 usps.com32.25 Walgreens2.69 Olive Garden44.46 Amazon25.26 Walmart Ihop28.40 mystery?38.61 Grocery Outlet20.70 Arbys7.87 Merrell Ranch Wendys4.60 Chukar cherries53.25 Walmart50.89 Greek21.67 usps.com15.25 JANUARY total Lemonade2.81 Groupon-haircut25.00 Wendys10.70 Haircuts24.95 JANUARY total Dollar Tree12.05 Auburn shipping27.95 Online watches4.00 Living Social- Amazon10.00 Harry and David9.04 usps.com4.75 JANUARY total853.37

14 Budget Building Options Mint.com -if you feel comfortable giving your bank account info Go old school-create paper files & keep receipts Switch to cash only-use a log and/or jars for each category Create your own tracking system

15 Another Sample

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20 Credit Cards, Scores, and Reports…oh my!

21 Credit Cards How many do you have? Why are they important? What one thing has brought you the most amount of debt? How much debt do you have?

22 Credit Card Tips -Pay down the balance with the highest interest rate first -Call regularly to ask for an interest rate reduction -Keep only 2-carry 1! -Stay away from retail store cards

23 Credit Reports Order one annually…for FREE. U.S. Reports from the big 3: Experian, TransUnion, Equifax Canada: Equifax Canada, TransUnion Canada & Northern Credit Bureaus Inc. Go through each line-print out and save.

24 TransUnion

25 Credit Scores cont. Ways to check your credit score –www.myfico.comwww.myfico.com You will have to pay to get your score How is it calculated? (Range: ) 35% Payment history 30% Credit utilization – The ratio of current revolving debt to the total available credit. 15% Length of credit history 10% Types of credit used 10% Recent search for credit – Credit inquiries, which occur when you are seeking new credit, can hurt your score

26 Institutional Retirement Plans: How do they work? % deducted % matched Allocations Growth Withdrawals* Moving jobs (WU Paystub Example)

27 A little becomes a lot… Me - $68.90 (plus my mandatory $34.45) WU - $ Total invested each month = $ and I am only responsible for providing 15% of that My TIAA-CREF Allocations –Mutual Funds –Life-Cycle Funds –Inflation Funds –Mid, Small, and Large Cap Stocks My money grows with the market/indexes

28 But I cant afford it! Fact vs. Reality –Real costs –Debt reduction –Spending habits –Free money –Time

29 All About You…Part II Do you participate in your institutions retirement plan? –When did you start Do you have money saved? In what ways have you set money aside? Whats your goal for retirement?

30 Ways to Save Money Savings Accounts Roth IRAs CDs Mutual Funds

31 The Rule of 72 The "Rule of 72" is a rule of thumb that can help you compute when your money will double at a given interest rate. It's called the rule of 72 because at 10%, money will double every 7.2 years. To use this simple rule, you just divide the annual interest into 72. For example, if you get 6% on an investment and that rate stays constant, your money will double in 72 / 6 = 12 years. Of course you can also compute an interest rate if you are told that your money will double in so-and-so many years. For example, if your money has to double in two years so that you can buy your significant other that Mazda Miata, you'll need 72 / 2 = 36% rate of return on your stash. Like any rule of thumb, this rule is only good for approximations.

32 Exercise How much do you want to have saved by the time you are 50 years old? Using the Rule of 72, and assuming a 6% return rate, what is the MINIMUM amount of money you can put aside in 2011 to achieve that goal?

33 SHHH…Here is a secret about student loans if you dont know this already….

34 Planning to move off Furniture Rent -deposit, first/last Utilities Cable/Internet Transportation Costs Cooking/Kitchen Save specifically for this! How much?

35 Ways To Increase Wealth Quit or reduce money wasters- like Starbucks & cigarettes Walk (it reduces the amount of gas you use) Reward yourself (within reason) for meeting your monthly goals Reduce the amount of times you eat out or use that board plan !

36 More Ways To Increase Wealth Pay down your credit cards-aggressively! When grocery shopping, always use a list! Make a list of everything you need or want-have a plan before you leave the house. Save!

37 Some things to remember… Pay yourself first Pay more than just the minimum payments –Pay aggressively on the card with the highest balance. Participate in your institutions retirement plan – its less expensive than you think Plan ahead Have an emergency fund People first, then money, then things – Suze Orman

38 Questions? Enjoy the rest of the conference! The safe way to double your money is to fold it over once and put it in your pocket. ~Frank Hubbard

39 Resources Gail Vaz-Oxlade Till Debut Do Us Part Bierman, Todd and Nathaniel Wice. The Guerrilla Guide to Credit Repair: How to find out whats wrong with your credit rating – and how to fix it Draut, Tamara. Strapped: Why Americas 20- and 30-Somethings Cant Get Ahead Orman, Suze. The 9 Steps to Financial Freedom


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