1. Peggy Olive, Family Living Agent Richland County UW-Extension How to Save a Dollar ….when you don’t have a dime to spare?

2. Why do you want to save money? $ To pay bills & make ends meet $ Save up for a large expense $ Save for emergencies $ Pay off debt $ Other reasons

3. Spending Income Do you think of saving as striking a balance? Or is saving money or cutting back a burden?

4. Flag of Italy

6. Spending Income

7. If you want to save money, make plans to spend it!

8. Ideas for Saving Money $ Claim Tax Credits

9. Ideas for Saving Money $ Put first things first = Prioritize

10. Ideas for Saving Money $ Have financial goals.

11. 1 Year3 Years5 Years Personal Financial Goals What – When – How much?

12. What’s the Price Tag for Each Goal? Goal Date Needed Amount Needed Amount to Save Monthly = New Car =March 2013 = $3000 = $83

13. Ideas for Saving Money $ Get (kind of) organized

14. Ideas for Saving Money $ Look for the little leaks “ Small leaks can sink big ships.” -- Ben Franklin

15. Ideas for Saving Money $ Find fun things to do that don’t cost (much) money (shopping, TV)

16. Ideas for Saving Money $ Don’t always buy in bulk.

17. Ideas for Saving Money $ Buy it cheaper $ Make it last longer $ Use it less

18. Ideas for Saving Money $ Look out for credit!

19. Making Minimum Payments on a Credit Card Balance: $1000 Annual Interest:18% Minimum Payment:3% or $30 Save Money by Using Less Credit

20. $1000.00 Payment #1-- 30.00 970.00 Interest+ 14.55 New Balance = 984.55 Payment #2 -- 29.54 New Balance = 955.01 Interest+ 14.33 New Balance = 969.34 Late Fee + $35 = $1004.34 Overlimit Fee + $35 = $1039.34 Interest Rate goes up to 33%

21. It will take almost 8 years to pay off the $1000 original balance. The finance charge will be $684 not including any late fees or over-limit charges or increases in interest rate. The original $1000 now costs $1684.

22. Pay Day Loans Rent to Own Car Title Loans Pawn Shops 400-800% 40-700% Rapid Tax Refund Anticipation Loans Subprime Types of Credit

23. Catching up on credit payments: $ Don’t take on any new debt $ Use “PowerPay” strategy

24. “Power Pay” Concept Pay your credit payments as usual. When first loan is paid off...... apply that payment to the next loan. When loan two is paid off...... add that payment to the next loan. Continue this process until all loans are paid off. Utah State University Extension www.powerpay.org

25. Power Pay Strategy DoctorDiscoverMasterCard April$35$22$35 May$35$22$35 June$0$57$35 July---$57$35 August---$57$35 September---$0$92 October$35---$57 …and so on$0---$92

26. Ideas for Saving Money $ Look out for debit too!

27. …One more idea for Saving Money $ Track your spending.

28. How do you know how much money you’re saving if you don’t know how much you’re spending?

29. Home Car Groceries Utilities Clothing Health Care Emergencies Other Extras Hobbies Debts Saving for longer-term goals Where does my money go?

30. Fixed Expenses Flexible or Variable Expenses Discretionary Expenses “Must Do’s” “Nice To’s” Where does my money go?

31. Track Your Spending DateAmount Spent Description of What Was Bought 3/1$31.92gas 3/1$695.00mortgage 3/4$65.00cell phone 3/7$93.89groceries 3/10$27.12gas and so on….

32. $ Notebook $ Receipts $ Checkbook $ Calendar $ Envelope Method $ Computer (free programs: mint.com or quizzle.com; Quicken or Money; your bank?) Ways to Track Spending:

33. Compare income and expenses once a month. Income Spending

34. CAUTION! You might be about to blow your budget: $ If you’ve had a bad day. $ If it’s a really good deal. $ If you have cash in your pocket. $ If you have an unrealistic fantasy. $ What’s your trigger?

35. When you can’t pay bills... Act now! Financial Counseling