1. Karen Aspinwall FCS Extension Educator Cecil County Your Financial Check Up

2. Emergency Fund Financial PlanCredit Record Health Life Property Disability Liability Insurance Financial Foundation Goals Spending Plan Financial Statements Financial Records Using it wisely Monitoring ID Theft Protection

3. Smart Money Tip #1 Make a Plan SS pecific MM easurable AA greeable RR ealistic TT ime-bound Turn financial dreams into S.M.A.R.T. Financial Goals!

4. Turn them into S.M.A.R.T. Financial Goals! SS pecific MM easurable AA greeable RR ealistic TT ime-bound

5. “I wish I wasn’t drowning in debt!” I will only play BINGO once a month and I’ll put the extra $40 toward debt payments so that my credit cards are paid off by March 2011. “I wish I could drive a car that’s paid for.” By packing (not buying) lunch 2 days/wk, I will pay an extra $50/month on my car payment so my car will be paid off by June 2011. Changing dreams to SMART goals

6. Smart Money Tip #2: Get Organized!

7. In the case of identity theft, an ounce of prevention is worth a pound of cure.... Clearing your good name from identity theft may take two to three years!

8. Assets- Liabilities= Net Worth Smart Money Tip #3: Know How You Are Doing Calculate your Net Worth

9. Online tools: www.mdsaves.org

10. Data from Employees Benefits Research Institute (EBRI) indicates that only 2 out of 5 people have done net or future worth calculations, but 44% of those who do make a positive change in savings behavior.

11. Track your expenses... Smart Money Tip #4: 4a. Be a Money Detective

12. Discover how money slips through your fingers

13. A spending plan is a roadmap for your money Income : All sources Expenses: Fixed, Flexible, Periodic Plans for spending/saving 4b. Develop a Spending Plan

14. A spending plan or budget is… $ Your spending guide $ Personal and unique $ Realistic $ Flexible Make your spending plan useful

15. Use 70% of take-home pay for living expenses. Use 20% to repay debt. Save 10% for you and your future. A Guideline To Remember:

16. Emergency Fund Financial PlanCredit Record Health Life Property Disability Liability Insurance Financial Foundation Goals Spending Plan Financial Statements Financial Records Using it wisely Monitoring ID Theft Protection

17. Smart Money Tip #6: Become Credit Smart Understand credit Use it wisely

18. Smart Money Tip #6: Become Credit Smart

19. Collect data:  Personal information  Employment history  Credit use and repayment history Provide information to:  Creditors  Employers  Insurers  Landlords What do Credit Bureaus do?

20. Start Here www.AnnualCreditReport.com

21. Contact company that reported the error Ask company to correct error, in writing, with each credit bureau Photocopy pertinent documents Write credit bureau, explain error and enclose documentation Send certified mail with return receipt Correcting a Credit Report

22. What is a Credit Score?

23. Credit Score Ranges  780-850 : Low Risk  740-780 : Medium Low Risk  690-740 : Medium Risk  620-690 : Medium High Risk  620 and Below : High Risk or Sub-Prime

24. www.myfico.com

25. Signs of Credit Trouble Exceeding the “20% Rule” Second salary is used to pay debts Dishonest about credit use Credit not thought of as debt Using credit impulsively Using cash advances to pay bills Smart Money Tip #7: Pay Off Debt

26. Bills paid late Paying only the minimum due each month Defaulting on payments Anticipated income increase is committed to debt repayment Don’t know total amount of debt (More) Signs of Credit Trouble

27. The Minimum Payment Trap Credit card: Balance of $3000. Card has 19.0% interest. Minimum per Month: 4% of balance (starts at $120/mo.) If you pay the Minimum each month: 4% of balance If you pay the Minimum plus $15 each month: 4% of balance plus $15 If you “Power Pay” each month: fixed payment of $120/mo No. of months to pay off debt134 (11.2 years!) 53 (4.4 years) 33 (2.75 years) Amount of Interest paid$1,872.49$1,358.74$849.27 Total amount paid$4,872.49$4,358.74$3,849.27

29. www.bankrate.com

30. Communicate with your creditors Stop credit use Create a realistic spending plan Develop a debt repayment plan Know when (and where) to ask for help! Regain Control

31. Every Little Bit Counts! Smart Money Tip #8: Develop a Savings Habit

32. Pay Yourself First! at 5% interest... Save this each week: In 10 years, you will have: $ 7.00 $ 4,720 $ 14.00 $ 9,440 $ 21.00 $ 14,160 $ 28.00 $ 18,880 $ 35.00 $ 23,600

33. $Continue to make loan/debt payments into savings after debt has been paid $Try a temporary crash savings diet by purchasing only bare necessities $Adjust your tax withholdings and save the difference $Save windfall money from lottery, inheritance and gifts $Save money from pay raise, bonus or working overtime Painless Ways to Save

34. Buy insurance - don’t let someone SELL it to you Buy appropriate insurance Buy adequate coverage Consider disability income insurance Consider long term care Smart Money Tip #9 Buy Adequate Insuranace

35. Health--Life--Property--Liability Disability--Long term care Buy insurance - don’t let someone SELL it to you. Follow the “Rule of Three” Buy adequate coverage Smart Money Tip #9 Cover Your Bottom Line: 9a.Insurance

36. Insurance Guidelines 1.Review periodically and update as needed through life cycle, including beneficiary designation 2.Keep essential coverage in force until a new policy starts 3.Keep up with changes in Medicare as you approach retirement

37. Powers of Attorney (general, financial, healthcare) Healthcare Advance Directives Will and/or trust(s) Guardianships for minor children or other dependents Personal property inventory with named recipients Smart Money Tip #9: Cover Your Bottom Line: 9b.Create an Estate Plan

38. 3-6 months 8 months (current average length of time of unemployment) Smart Money Tip #9: Cover Your Bottom Line: 9c. Establish an Emergency Fund

40. Saving: Preserve principal while getting a small return. Smart Money Tip #10 Invest Wisely Investing: Increase principal in hopes of getting a greater rate of return.

41.  Prepare financial statements  Set financial goals  Establish a spending plan  Organize financial records  Establish a positive credit history  Maintain adequate insurance coverage Prerequisites to Investments

42. Insured Savings, Savings Bonds, Money Market Funds, Certificates of Deposits Life Insurance Investments Government Securities High Quality Corporate Stocks, Bonds and Mutual Funds Real Estate Aggressive Growth, Junk Bonds, Stocks and Mutual Funds Futures Contracts Collectibles Pyramid of Investment Risk Increased Risk Financial PlanCredit Record Health, Life, Property, Disability, Liability Insurance Financial Foundation Goals, Spending Plan, Financial Statements and Records Using it wisely, Monitoring, ID Theft Protection Emergency Fund

43. The Time Value of Money and Compounding Interest Start saving today!

44. If you save $5 a week until age 65, starting at: age 20, you’ll save $114,282 age 30, you’ll save $49,701 age 40, you’ll save $20,606 The Time Value of Money and Compounding Interest Start saving today!

45. TAX DEFERRAL MAGIC 403b 457 IRA 401k Smart Money Tip #11 Take advantage of Tax Deferment

46. http://www.choosetosave.org/ballpark / Smart Money Tip #12 Plan for Retirement Do your own “Ball Park Estimate” for Retirement planning

47. Your input is very valuable to us! Please take a moment to complete the evaluation form. Your Financial Check Up Karen Aspinwall FCS Extension Educator Cecil County