1. Making Your Money Work for You Financial Classes Personal Coaching

2. Making Your Money Work for You Today we’ll talk about… Using a spending plan to set goals. Loan repayment strategies. Managing your credit report.

3. “Coaching to support learning has been proven to be an effective and dynamic process that drives the sustainability of training…” Source: Scott Blanchard, founder, Coaching.com

4. A spending plan is the foundation of a solid financial future

5. A spending plan helps you Cover necessary expenses, while saving for the future. Pay bills on time. Be debt free. Establish and maintain good credit. Reach short and long term goals.

6. Where do you start?

7. Develop strategies to increase discretionary income For effective cash flow management Compare actual versus estimated monthly cash; make necessary adjustments. Identify variable expenses to trim or budget monthly. Be realistic about expenses. Identify needs vs.wants.

8. Watch out for “cash flow traps” Steadily increasing credit card debt. Trade-up syndrome – spending more as income rises. Maintenance expenses (failing to budget for home maintenance, car repairs, etc.) Failing to track cash expenditures.

9. Whenever possible, make your finances “automatic” Direct deposit of paycheck. Bill pay service through checking account. Payroll deduction/auto-transfer to build savings. Automatic deduction of insurance premiums, etc. Automatic “sweep” account for investable cash. Dividend reinvestment for stock and mutual funds.

10. Take control of your debt Student loans may be your most significant debt. Other life goals are often contingent upon reducing student loan debt. Debt repayment strategies should reflect your personal goals.

11. Student loan options Deferment Forbearance Loan consolidation Loan repayment and forgiveness programs

12. Consumer debt options Negotiate a lower rate Balance transfer Debt consolidation Credit Counseling services Debt settlement Bankruptcy

13. Consolidate debt from accounts or loans with higher interest rates to reduce the interest paid. ProsCons Is there a time limit on the low interest rate? Is there a balance transfer fee? Some companies will raise rates to 20% or more and charge a late fee if payment is late. Consumer Debt Strategy Balance transfer to a lower rate card

14. Consumer Debt Strategy Debt consolidation to an equity loan Pros Transfer to a secured loan with lower interest rate. Interest may be tax deductible (check with a tax advisor). Cons Many people feel the burden of debt has been removed and soon can pile up new debt on fresh credit cards. Missed payments could result in foreclosure and loss of your home.

15. Beware of Payday Loans!

16. Should I use extra cash to pay off student loans and credit cards, or contribute to my employer’s retirement plan?

17. New borrowing In the next several years, you may need to secure additional credit:  Car loan  Home mortgage  Education expenses

18. Good credit is important in achieving these spending goals Five categories of data determine credit score. 35% Payment history 15% Length of credit history 10% New credit 30% Amounts owed 10% Types of credit used Percentages show relative importance in determining credit score

19. Your credit score affects the interest rate you pay How your credit score could affect the cost of a 30-year mortgage for $250,000 FICO score Annual % rate Monthly payment Total interest paid 720-8505.888%$1,481$283,132 700-7196.011%$1,500$290,232 675-6996.548%$1,588$321,705 620-6747.698%$1,782$391,540 560-6198.531%$1,928$444,000 500-5599.289%$2,063$ 492,952 Source: Fair Isaac

20. Ways to improve and maintain credit score Pay bills on time Minimize credit inquiries Keep debt to available credit ratio (utilization) at 30% or less. Pay off debt instead of moving it around Avoid closing unused accounts as a short- term strategy to improve your credit score

21. 79% of credit reports surveyed contained either serious errors or other mistakes… Source: www.uspirg.org (Federation of State Public Interest Research Groups)www.uspirg.org

22. You are entitled to a free credit report (one from each of the 3 national bureaus) every 12 months Check for errors that can lower your score Order your reports through the website, www.annualcreditreport.com, by phone, www.annualcreditreport.com 877-322-8228, or by writing: Annual Credit Report Request Service P. O. Box 105281 Atlanta, GA 30348-5281

23. What is the best way to develop an effective spending and debt repayment plan?

24. It’s Important to Set Specific, Measurable Financial Goals

25. What is the best way to achieve financial goals that you set?

26. Financial Coaching Create clear goals and accomplish them Increase self-confidence and make financial decisions more easily Explore financial road blocks/challenges and learn how to get through them You and your partner are more likely to work together regarding finances!

27. Did you know? Source: Scott Blanchard, founder, Coaching.com “Successful training takes more than putting people in a classroom and hoping that they will learn, absorb, and retain the material that’s presented…”

28. “According to industry research, coaching helps people organize their increasingly complex lives, providing focus, a clear direction for setting goals, and the ability to develop meaningful action plans.” Source: “E-Coaching” by Merry Lee Olson

29. My Secure Advantage ™ (MSA ™ ) Financial Coaching Our program helps you focus on the major areas of your finances: Improve your budget Improve your credit Maximize savings Retirement planning

30. My Secure Advantage ™ Financial Coaching MSA ™ is a financial wellness program MSA ™ provides a confidential relationship with a professional to help you set and achieve financial goals.

31. By attending today’s class… You have 30-days free access to the MSA ™ financial coaching program. Let’s get started!

32. This presentation, and any handouts, were created and/or distributed by CLC Incorporated (CLC) and its Employee Assistance Plan (EAP) client. The presenter hereof is an independent provider of financial and/or insurance services. The presenter, and his/her broker- dealer or insurance agency, are neither employees nor agents of CLC or the EAP. This presenter has been retained as an independent contractor for the sole and exclusive purpose of making this CLC and EAP approved presentation.

33. The information presented is not to be a substitute for seeking advice specific to your situation from a legal or financial professional. If legal or financial advice is required, contact an attorney or financial advisor. The content hereof, together with any attachments, are subject to Federal and State Copyright and Trademark protections. This content may not be used, reproduced or distributed in any manner, in whole or in part, without the prior written consent of CLC Incorporated.