Living Off Your Paycheck HealthKeepers, Inc. is an independent licensee of the Blue Cross and Blue Shield Association. ® ANTHEM is a registered trademark of Anthem Insurance Companies, Inc. The Blue Cross and Blue Shield names and symbols are registered marks of the Blue Cross and Blue Shield Association.

2 Objectives ▪The Psychology of Money ▪Goal Setting ▪Credit and Debt ▪Meat vs. Gravy ▪Tips for Saving ▪Budgeting

3 Psychology of Money Ask yourself these tough questions ▪What does money mean to you? ▪What did money mean to you? ▪What do you need to do in order to change your behavior? ▪What is your “latte factor?” ▪How motivated are you to change your money belief system?

4 Small Steps to Big Changes Every decision you make takes you one step closer to being wealthy… …or one step further away.

5 Change Your Behaviors ▪“Learned Optimism” ▪ 21 Day Rule ▪ Motivation ▪ Necessity ▪ Reality Check ▪ Role-Model ▪ Become a Learner

6 Understanding Net Worth Your income is NOT your net worth.

7 Net Worth ▪What it is: o Your financial worth ▪How to calculate it: o Assets – liabilities = net worth ▪Why it's important: o You need a plan

8 Goal Setting ▪Savings ▪House ▪Car ▪College ▪Retirement

9 Creating a Spending Plan What’s your most important expense? Pay yourself first!

10 Creating a Spending Plan Pay yourself first ▪Emergency Fund ▪Contribute to a retirement fund It’s not how much you make, it’s how much you keep.

11 Goals for Retirement ▪What percent of you average annual gross salary do you need to retire on? ▪What do you want your retirement to look like? ▪What lifestyle compromises are you willing to make?

12 Credit What is credit? ▪Numerical representation of your credit history ▪Scores range 350 – 850 ▪3 major credit bureaus ▪3 credit scores The 5 parts of a credit score ▪Types of credit used ▪Debt ratio ▪Payment history ▪Length of credit history ▪Hard inquiries

13 Credit Cards ▪Credit cards are a tool ▪The CARD Act of 2009 made lots of changes ▪Consumer Financial Protection Bureau Get free credit reports, not scores, at

14 Reduce Your Debt – The Virtuous Circle Loan 1Loan 2Loan 3 Amount Interest Rate12%18%24% Term 96 months Minimum Payment Total Minimum Payments Add $100 Payment100 Total Payments Original Payment New Money New Payment New Term17 months43 months63 months

15 Meat vs. Gravy

16 Budgeting 70% of Gross Salary  “Meat” 10% Cash  Available at the end of the day  Savings account  Credit union  ING Direct 10% Retirement  IRA/401K  Minimum- what else can you do? 10% Gravy  Vacation  Gifts  Eating out

17 “From pennies we get broke and from pennies we get rich.” “Win in the Margins” – Richard Paul Evans

18 Tips for Saving Money For you and your family  Turning lights off  Not going out to eat  Not ordering food in  Shopping at various grocery stores  Buy clothes that do not require dry cleaning  Change your gift giving habits- maybe gifts of trade instead o Include dog walking, baby sitting, cleaning out closets  Take advantage of library, free movies, and all discounts possible

19 Action Plan Write down one thing you are going to do within 24 hours to achieve your goals.  What steps do you need to take?  What information do you need to get?

20 Resources  Books o The Automatic Millionaire by David Bach o The Wealthy Barber by David Chilton o The Millionaire Next Door by Stanley & Danko  Websites o Fool.com o Mint.com o Bankrate.com o Learnvest.com

21 ▪Face-to-face counseling sessions ▪Legal/Financial consultations ▪Child/Eldercare consultation & referrals ▪Daily life resources ▪ID theft recovery ▪Free credit monitoring ▪Tobacco cessation: coaching & online ▪Comprehensive website o Resources o Self assessments o Live-connect feature o Health/wellness library o Legal forms Call (enter toll free) or go to our website at Login: Your company name How Your EAP Can Help – If you’d like to receive more support consider contacting your EAP

22 Thank you! 22 Questions?