1. Six Ways to Increase Wealth Laura Connerly, Ph.D. Assistant Professor

2. Wealth Recommendations Balance income & expenses Calculate debt load Check credit report Know your credit score Save for emergencies Plan for retirement

3. Balance Income & Expenses Income Statement Expense Statement Spending Plan Fixed Variable Periodic www.uaex.edu

4. Your Spending Plan Total Income - Total Expenses

5. Calculate Debt Load List monthly payments: Car325 Student loan100 Credit cards 75 TOTAL525 Divide by monthly net income: 525÷2500=.21 OR a 21% debt load Credit Management factsheets: Managing Credit Financial Fitness Series: Trim Your Credit Line Credit Reports and Credit Scores www.powerpay.org

6. Check Your Credit Report Equifax Experian TransUnion Credit Bureaus Online at: www.annualcreditreport.com

7. Know your credit score Credit scores must be purchased Each credit bureau varies Two major types: Fair Issac Corporation – FICO Score VantageScore

8. Save for Emergencies Take Small Steps Work toward 10% Start and increase Build Emergency Fund Critical safety net Start with $1,000 3 to 6 months of income

9. Plan for Retirement Most people don’t save enough. Prepare for financial stability in later life: 1.Maximize matched contributions to employer provided plan 2.Maximize allowed contributions to IRA 3.Minimize debt to retire debt free 4.Save and invest www.extension.org

10. Six Ways to Increase Wealth Laura Connerly, Ph.D. Assistant Professor