Cash Management System The “#MoneySavvy” Cash Management System Learn how to manage your cash-flow without the pressures of feeling like you’re on a budget

Here’s what you’ll discover Simplify and automate your financial life Develop a clear framework for making spending decisions Help you to prepare for life events and unexpected challenges How to allocate all of your financial resources

How Most Households Manage Money

How Most Households Manage Money Cash ATM “Mad Money” Credit Card Home Equity Loan Dining Home Mortgage Entertainment Car Loan Shopping Insurance Groceries Medical Utilities

Three “Buckets” Of Money An Easier, More Effective Approach

Your Three “Buckets” Of Money Fixed Bucket Variable Bucket Future Bucket Past Commitments Present Choices Future Needs & Wants

How the Buckets work Fixed Bucket – 30 Day Money What you will spend on a monthly basis to cover your fixed expenses and financial commitments Variable Bucket – 7 Day Money What you will spend in a week to cover your fixed expenses and financial commitments Future Bucket – Future Money What you save to fund your needs and wants

You are able to predict these expenses – there are no surprises The Fixed Bucket These are the expenses that you incurred in the past and or have agreed to make regular payments on You are able to predict these expenses – there are no surprises It is critical to know how much money it takes to operate your household on a monthly basis

Examples of Expenditures Fixed Bucket Mortgage Property Taxes Car Payments Utilities (telephone, electricity, garbage) Credit Cards (debt reduction only) Services (house – Cleaning, health club) Insurance (Premiums) Giving (Set commitments) Past Commitments

The Variable Bucket Use this money for regular weekly expenses that typically vary in cost These expenditures are hard to monitor—”Where does the money go?” Deciding ahead of time how much money to put into the Control Bucket is an easy method for understanding and managing these expenditures

Examples of Expenditures Control Bucket Groceries Gas Eating Out Lattes Recreation and Entertainment Socializing (drinks, food, parking) Lunches Parking Cash (“spending money”) Present Choices

Future Needs and Wants: The Future Bucket Future Needs and Wants: The dynamic Bucket is also a tool for achieving your goals and dreams. This is the money you will spend in the future This bucket prepares you for expected and unexpected financial challenges.

Examples of Expenditures Dynamic Bucket Cash Reserve and Emergency Fund Holidays and Gifts Vacations Home and Yard (Furnishings, Improvements) Car Repair and Replacement Education Funding Special Giving/Sharing Retirement Savings Future Needs and Wants

(future needs and wants) How the Buckets Work The size of your STATIC BUCKET (past commitments) limits the size of your CONTROL BUCKET (present choices) and what is available for your DYNAMIC BUCKET (future needs and wants)

How the Buckets Work Lack of focus on your CONTROL BUCKET (present choices) will reduce/eliminate money that could be available for your DYNAMIC BUCKET (future needs and wants)

How the Buckets Work When a large expense occurs, and the money has not been saved in your DYNAMIC BUCKET (future needs and wants), it gets added to your STATIC BUCKET (past commitments) in the form of debt. This builds a larger STATIC BUCKET (past commitments) and reduces the amount of money available for your CONTROL BUCKET (present choices) and DYNAMIC BUCKET (future needs and wants).

Your Money Savvy Cash Flow Income to your Household Weekly Lifestyle and Personal Expenses Debit or Cash Monthly Savings for Future Expenses Saving Accounts Fixed expenses for your Household

How the Buckets Work When a large expense occurs, and the money has not been saved in your DYNAMIC BUCKET (future needs and wants), it gets added to your STATIC BUCKET (past commitments) in the form of debt. This builds a larger STATIC BUCKET (past commitments) and reduces the amount of money available for your CONTROL BUCKET (present choices) and DYNAMIC BUCKET (future needs and wants).

Money Savvy Cash Management This is what this system will do for you: Simplify and automate your financial life 01 02 Demonstrate how your financial resources are allocated Provide an effective way to communicate about your household finances Develop a clear framework for making decisions 03 04 Clarify your priorities and develop a powerful process for achieving your goals and realizing your dreams Help you to prepare for life events and unexpected challenges 05 06