1. Take Charge and Reach Your Goals www.picpa.org (215) 496-9272 info@picpa.org Money & Life Presenter:

2. Take Charge PICPA – Pennsylvania Institute of Certified Public Accountants PICPA is a professional association of more than 19,000 CPAs working together to improve the profession and serve the public interest.

3. Financial Education Juggling Financial Priorities Budgeting

4. Comprehensive Financial Planning Process  In-depth analysis of all factors that may arise in your quest to meet your financial and personal goals  Discuss finances, current needs and concerns, future goals, risk tolerance and time horizons

5. Comprehensive Financial Planning Process Identify your values and goals Define your investment objectives Develop and implement a suitable strategy to achieve those goals

6. Comprehensive Financial Planning Process Components Insurance Planning Estate Planning Budgeting and Debt Management Retirement Planning College Planning

7. First Priority Insurance Planning Life insurance Health insurance Disability Long-term care Estate Planning Wills Durable power of attorney

8. Second Priority Budgeting and Debt Management How much are you spending? Do you have an emergency cash reserve? Retirement Planning How much will you need? Are you on track? College Planning You can borrow for college, but not retirement

9. Before We Can Prioritize….. We must find out: What’s working and what’s not working today? Where are you today? Where do you want to be tomorrow?

10. Before We Can Prioritize…. What is working? Assess yourself Where are the needs for focused improvement?

11. Before We Can Prioritize….. Where are you today? What is your income? What is your net worth? What are your expenses?

12. Before We Can Prioritize….. Where do you want to be tomorrow? The answers are individual based on values From values, we develop goals and dreams From attaining our goals and dreams, we find our purpose From having purpose, we become fulfilled

13. Three Questions Provide direction in our thinking and help to prioritize our values Developed by George Kinder and the Kinder Institute of Life Planning

14. Question One Imagine you are financially secure and have more than enough money to take care of your needs – now and in the future. How would you live your life? What would you do with your money? Describe a life that is complete and fulfilling. Developed by George Kinder and the Kinder Institute of Life Planning

15. Question Two Your doctor tells you that you have 5 – 10 years left to live and will have no forewarning of your death. What will you do in the remaining time you have left? Will it change your life and how you are living? Developed by George Kinder and the Kinder Institute of Life Planning

16. Question Three This time, your doctor shocks you with the news that you only have one day left to live. What dreams have been left unfulfilled? What do you wish you had done differently? What did you miss? Developed by George Kinder and the Kinder Institute of Life Planning

17. What Are Your Goals? Refer to the “Values and Goals” sheet Pick your top 3 – 5 values based on your priorities Refer to the “What is Working” sheet for focus areas Start to plot out your short-term and long-term goals on the Goal Grid

18. Budgeting Simple, but not easy

19. Budgeting Wealth Accumulation OR Meeting Your Personal Financial Goals How much you earn has almost no bearing on whether or not you will build wealth and meet your financial goals because……. The problem is not how much we MAKE, it’s how much we SPEND.

20. Budgeting Your life in not a quest for making more money Money is a tool in the quest for the life you want to live Your budget is your most important tool

21. Your Budget Recurring fixed expenses – easily tracked and easy to plan for – these expenses generally do not keep us from saving more Exception is over weighted housing and/or automobile costs Not necessarily “mandatory” expenses Challenge, as necessary

22. Your Budget Discretionary Expenses – not as predictable but much more manageable in terms of reducing spending and budgeting guidelines for yourself and your family Challenging this area of expenses is necessary

23. Your Budget Unexpected Expenses – why we need a cushion in our budget Set aside some of your earnings for the unexpected things that come up Separate savings account

24. Goal in Budgeting Income less expenses = positive cash flow Positive cash flow can be used for: Savings for emergencies, a financial cushion, short term goals, long-term future and goals Debt repayment Charitable endeavors Gifting to others

25. Balancing Debt and Savings Don’t wait until your debt is paid off to start savings! Guideline: Determine how much potential positive cash flow you have available and allocate between debt repayment and savings

26. Savings Emergency cash savings 3 months expenses – target range is $1,000 through $10,000 Liquid cash account easily accessible - Savings account - Money market - Line of credit

27. Savings Savings for long-term future: retirement Savings for a financial cushion: the unexpected expenses Savings for short-term goal: vacation, home improvements, car purchase Plan ahead for the next few years

28. Tips Prioritize and keep your eye on the prize Prize = reaching your goals for short and long-term savings, debt repayment, charitable and gifting Determine “your” room for improvement Start paying cash – you can reduce spending by up to 50% by doing so

29. Tips Never spend more than $100 (for example) without taking 48 hours to think about it – this will help with impulsive spending Systemize your plan

30. Take Action Determine the amount you’re allocating to savings goals and debt repayment goals Set up savings and debt payments automatically - Payroll deductions to checking and savings - Online banking – automatic payments - Automatic transfers

31. Take Action Other things can not get in the way if the plan has been systemized If we wait for what’s “left over” nothing will be there Pay yourself (your goals) FIRST every month

32. Questions and Answers