SAVINGS & Investing TIPS Mr. Lindquist “Live life like no one else today…so you can live life like no one else tomorrow” – Dave Ramsey

Be Personal Be Honest Be Realistic Don’t just put down a goal because someone else did…what do you want and WHY do you want it? Be Honest If I’m not willing to work hard in school, am I really going to work hard and pay attention to stocks in my adult life? Be Realistic Look at your salary. What can you afford to save and have the lifestyle you want Don’t set ridiculous goals

SAVINGS TIPS Save 10% of your Income (15% if you think it is honest and realistic.) Write it in a BUDGET!!!! Pay YOURSELF First Payroll Deductions  Money taken directly out of your paycheck to your investments Start YOUNG!!! (Invest less money and get more RETURN in the end) SET GOALS What is a goal that is not written down? BE INFORMED

5 Parts to ANY Good Goal Goal Area Time Frame Reasons & Amounts $ Needed (AFTER INFLATION) Pick the TYPE of Investment you want to put your $ in AND How Much you need to put in to accomplish your goal

GOAL AREAS Rainy Day Fund (Conservative) Big Expensive Items (B.E.I.) Unexpected economic changes Unexpected economic emergencies Big Expensive Items (B.E.I.) Meeting Long and Short Term financial goals Example: House down payment, Car, Boat, College Education, Big Screen TV, etc. Retirement Biggest Financial Mistake  Not starting early enough for Retirement “What would you do… if you had enough money to do anything you wanted ALL DAY LONG and didn’t have to go to work?” Additional Living Expenses BEI’s you want after retirement (Homes, vacations, hobbies, golf, etc.)

KNOWING YOURSELF (Assessing your ability to save) A. Know and List Financial Goals What do you want???? B. Know your Risk Tolerance How willing you are to take chances and possibly lose money Risk vs return – ratio If you hate parting with your money = LOW Risk Tolerance C. Know your Level of Understanding Economic indicators, Cause and Effect of Economic Events, Personal Finance and Economics Class grade? TIP GET PROFESSIONAL HELP!!! D. Know your Willingness to be Involved Stock Pages, Researching investments, keeping up with the news and checking investments