Money Management Basics

Complete the Picture Your financial life can be complicated and confusing Having the outline gives a good picture of what you are doing Missing pieces of a puzzle can be frustrating and costly Putting all the pieces together can give a good picture, help you save money, and reduce stress

Stages in Managing Money Plan Set Goals Set guidelines Make decisions Track Keep records Reconcile Change when needed Identify new direction

Wealth building Protection Home buying Retirement account Distribution Retirement and estate planning Wealth building Home buying Retirement account Protection Debt reduction Emergency savings Insurance Wills Budgets Plans

For this session we will talk about the foundation layer Distribution Retirement and estate planning Wealth building Home buying Retirement account Protection Debt reduction Emergency savings Insurance Wills Budgets Plans

Goals Provide direction Help us decide what we need to get there Can lead to agreement and commitment Can help with choices and decisions

Goals S - Specific M - Measurable, mutual, motivating A - Attainable Need to be written and meet the SMART criteria S - Specific M - Measurable, mutual, motivating A - Attainable R - Relevant, realistic, and be reviewed and revised as conditions change T – Include a timeline and consider tradeoffs

Goals, Decisions, and Money Wants and needs or logic and emotion Knowing the difference will improve goals, decisions, and eventually money Let’s talk about the differences Needs are things we cannot live without Wants are what we think will make life better and more enjoyable

Plans The plans we make in life are determined by our values, habits, and attitudes Values are deeply held beliefs about how things should be in life Values and attitudes can interfere with decisions about money Differences in values and attitudes in couples and families can cause disagreements

Attitudes about Money It is important to understand our attitude towards money There is a link between our attitude and values and how we spend money Work through this activity so you can discuss it later with anyone who would have a say in how money is spent

Putting Knowledge to Work Now we will take a few minutes to actually write some goals These will not be shared with anyone except significant others so please feel free as you work through this exercise

Making the Decision SUCCESS Evaluate Progress Take Action Make a plan Compare the choices Seek information Goal

Questions and Comments

Set Priorities All goals cannot be met Goals require resources like time and money There are limits Decisions need to be made about which are more important Agreement is imperative

Questions and Comments