2. FINANCE, It’s a Personal Thing ! WHICH WAY IS NORTH ?

4. TIME IS MONEY $$$

5. 1920002,24000 2020004,74900 2120007,55800 22200010,70600 23200014,23000 24200018,17800 25200022,59900 26200027,55100 27030,85720002,240 28034,56020004,749 29038,70820007,558 AGEBENRETURN ARTHUR RETURN BEN AND ARTHUR---BOTH SAVE AT 12% PER YEAR! BEN STARTS AT AGE 19 AND ENDS AT AGE 27 ARTHUR STARTS AT AGE 27 AND STOPS AT 65

6. 6001,298,832000861,317 6101,454,692000966,915 6201,629,2620001,085,18 6301,824,7720001,217,64 6402,043,7420001,366,00 6502,288,9920001,532,16...AND HE NEVER CAUGHT UP! AGE BEN RETURN ARTHURRETURN

7. 18% interest is not 3 times better than 6% interest!

8. $1,000 one time investment, no withdrawal Age 25 to Age 65 (40 years) 18%12%6% 0 100000 200000 300000 400000 500000 600000 700000 800000 18% = $750,378 12% = $ 93,050 6% = $ 10,285

9. Money Management Strategy: Financial Statements and Budgeting

10. Long Term Save and Invest Future Income Lost Interest

11. Major Money Management Activities Creating and implementing a plan for spending, and saving (budgeting). Creating personal financial statements (balance sheets and cash flow statements of income and outflow). 3-4 Storing and maintaining personal financial records and documents.

12. Report Measure Maintain Provide

13. Assets Liabilities Assets – Liabilities Net Income Fixed & Variable

14. Lower Higher <20% 10%

15. Future Emergency Fixed Variable Variances Flexible

16. “Baby Steps” Step One: $1,000 in an “Emergency Fund” Step Two: Pay off all debt (except the house) utilizing the “ Debt Snowball” Step Three: 3 -6 months expenses (necessities only) in savings

17. “Baby Steps” Step Four: Invest 15% of Household Income into ROTH IRA’s and Pre-tax retirement plans Step Five: College Funding Step Six: Pay-off Home Early Step Seven: Build Wealth! (Mutual Funds/ Real Estate)

18. The Amazing Free Car Story We normally buy: $18,000 car: 7 years at 10% payments of $300 Value after 7 years $800 OR $6,000 car: 7 years at 10% payments of $100 Value after 7 years $400 The other $200 per month saved at 10% 7 years = $24,190. NOW WHO MADE THE CORRECT CHOICE!!

19. The Amazing Free Car Story No Car Payments! At Year Seven the car is junk, in either plan, but in our plan: Savings$24,190 One year old car for cash$16,000 Left in savings$ 8,190

20. The Amazing Free Car Story Another Seven Years: Save $300 per month from year 7 to year 14 plus interest on $8,190 (10% return) The car is junk, again. Savings$52,245 One year old car for cash$25,000 Left in Savings$27,245 No Car Payments! So Here we go again! We will have “Free Cars” the rest of our lives just because we purchased a lower priced car one time 14 years ago.

21. MAJOR COMPONENTS OF A HEALTHY FINANCIAL PLAN Teach My Children Retirement Funding Life Insurance Written Cash Flow Plan Will and/or Estate Plan Debt Reduction Plan Tax Reduction Plan Emergency Funding Charitable Giving Health Insurance Disability Insurance Auto Insurance Homeowners Insurance

22. IAMNOWHERE I AM NOWHERE