1 Jerry L. Basford sa.utah.edu/personalfinance. 2 Top Priorities Get out of debt. Get out of debt. –National credit debts is at $970 billion, 50% higher.

Slides:



Advertisements
Similar presentations
Chapter 13: Investment Fundamentals and Portfolio Management
Advertisements

TEST PREP 1. A. The amount you can afford to pay B. The minimum payment stated on your bill C. The minimum amount due on your debit card D. 20 percent.
Measuring Your Financial Health and Making a Plan
© 2013 Pearson Education, Inc. All rights reserved.2-1 Measuring Your Financial Health and Making a Plan.
Measuring Your Financial Health and Making a Plan
Measuring Your Financial Health and Making a Plan
Financial Planning Tips for a Lifetime Advice from CPAs.
1 Chapter 2 – Measuring Financial Health Important parts Construct & interpret financial statements Budgeting Record-keeping Financial planners.
Money Management Strategies
Money Management Skills
4.01 Accounting and Finance. What is Accounting? Method of reporting financial activity of a business Financial transactions recorded in an orderly fashion.
JA Dollars With Sense. Overview IntroductionsExpectations Lesson 1: Let’s Talk Money Lesson 2: Be A SMART Shopper Lesson 3: Look After Your Money Lesson.
2 Money Management Skills
© Thomson/South-WesternSlideCHAPTER 241 BUDGETING, SAVING, AND INVESTING MONEY 24.1Budgeting Money 24.2Saving Money 24.3Investing Money Chapter 24.
The Financial Plan Chapter 2. Definitions You Need to Know Personal financial plan: specifying financial goals and describing in detail the spending,
Money Management Strategy
Chapter 12 Savings.
Chapter 2 Money Management Skills Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
ROSELIZA HAMID/UITM KELANTAN/2010 INTRODUCTION. ROSELIZA HAMID/UITM KELANTAN/2010 CHAPTER OUTLINE  Personal financial planning  The importance  A planning.
Financial Literacy 101 Todd Jorns
Unit 2: Measuring Financial Health. Learning Objectives O Define asset, liability, and net worth. O Calculate the level of net worth using a balance sheet.
Monday January 30 th Personal Finance 1. Journal: 5 reasons you need to budget Journal Which reason is most important to you and why? How can you start.
Part Chapter © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 1 McGraw-Hill Personal Finance 1 Chapter 14.
1 Financial Wellness Curriculum Introduction to Financial Management More information available at
Intro to Investing Economics & Personal Finance Lesson 13.
Investment Basics Stock & Bond Basics Mutual Fund Basics Retirement PlanningBuying a Home
1 Money Management Skills: Financial Statements and Budgeting Or “We Spent How Much On What?!” C HAPTER 2.
FINANCE, It’s a Personal Thing ! WHICH WAY IS NORTH ?
Financial Management Jonathan Banks. 1. Get Paid What You're Worth and Spend Less Than You Earn 1. Get Paid What You're Worth and Spend Less Than You.
Budgeting Personal Finance. Financial Planning Net Worth Income Expenditures Unplanned Expenditures Debt Savings.
Financial Literacy 101 Todd Jorns
Contents Topic Sorting out your money Step 1 Know what you spend Keep a spending diary Use the spending calculatorspending calculator.
UNIT 4: SAVING AND INVESTING 1. Discuss how saving contributes to financial well- being 2. Explain how investing builds wealth and helps meet financial.
Garman/Forgue Personal Finance Ninth Edition Chapter 3 Financial Statements, Tools, and Budgets.
© Prentice Hall, 2007Excellence in Business, 3eAppendix C - 1 Personal Finance: Getting Set for Life.
Managing Your Money Chapter 23.
Goals: Describe the financial planning process. Explain action for implementing a financial plan. Identify actions for reviewing a financial plan.
Topic 5: Cash Flow Management
Financial Literacy 101 Todd Jorns
Chapter 1 Overview of a Financial Plan. Copyright ©2014 Pearson Education, Inc. All rights reserved.1-2 Chapter Objectives Explain how you benefit from.
2-1 Measuring Your Financial Health and Making a Plan.
Financial Planning is about more than investing it’s about managing your life … it’s for everyone!
Copyright © 2017, 2014, 2011 Pearson Education, Inc. All Rights Reserved Personal Finance SIXTH EDITION Chapter 21 Estate Planning.
Statement of Financial Position
Statement of Financial Position
Chapter 2 Measuring Your Financial Health and Making a Plan
Statement of Financial Position
Statement of Financial Position
Statement of Financial Position
Personal Finance Bill Klinger.
Choosing to Save Essentials
Dollars and Decisions Chapter 3 Balance Sheet.
Measuring Your Financial Health and Making a Plan
Personal Finance Putting It All Together
Statement of Financial Position
Statement of Financial Position
Money Management Strategy
Statement of Financial Position
Statement of Financial Position
Statement of Financial Position
Statement of Financial Position
Statement of Financial Position
Statement of Financial Position
Statement of Financial Position
Statement of Financial Position
Financial Statements, Tools, and Budgets
Statement of Financial Position
Statement of Financial Position
“Take Charge of Your Finances” Advanced Level
Presentation transcript:

1 Jerry L. Basford sa.utah.edu/personalfinance

2 Top Priorities Get out of debt. Get out of debt. –National credit debts is at $970 billion, 50% higher than in Strike the word “deserve” from your conversations. Strike the word “deserve” from your conversations. –What you deserve is irrelevant; what you can truly afford is what counts. Decide once and for all if you want to indulge or protect your family. Decide once and for all if you want to indulge or protect your family.

3 5 Important Components of Goals (SMART): Specific Specific Measurable Measurable Attainable Attainable Realistic Realistic Timely Timely

4 How Financial Planning Affects Your Cash Flow 1. Budgeting and Tax Planning Your Cash 7. Products and Service 5. Investing 4. Income and Asset Protection 2. Managing Liquidity (Cash and Credit Management) 3. Managing expenditures for major purchases $ Credit $ Deposit $ Loans $ Spending $ Investments $ Invest for Retirement $ Insurance $ Income 6.Retirement and Estate Planning

5 Good Debt vs. Bad Debt Debt incurred for consumption is bad debt. Debt incurred for consumption is bad debt. Bad Debt = Debt Danger Ratio Annual Income Debt Danger Ratio beyond 25% can spell trouble.

6 Income Statement

7 Balance Sheet

8 Investment Terminology Bull Market – A random market movement causing an investor to mistake him/herself for a financial genius. Bull Market – A random market movement causing an investor to mistake him/herself for a financial genius. Bear Market - a 6 to 12 month period when the kids get no allowance and adults get no date nights. Bear Market - a 6 to 12 month period when the kids get no allowance and adults get no date nights. P/E Ratio – The percentage of investors wetting their pants as the market keeps crashing. P/E Ratio – The percentage of investors wetting their pants as the market keeps crashing. Broker – What my broker has made me. Broker – What my broker has made me. Standard & Poor – Your life story in a nutshell. Standard & Poor – Your life story in a nutshell. Financial Planner – A person that actually remembers their wallet when they run to the for toilet paper and milk. Financial Planner – A person that actually remembers their wallet when they run to the for toilet paper and milk. Market Correction – The day after you buy stocks. Market Correction – The day after you buy stocks. YAHOO – What you yell after selling it to some sucker for $240 a share. YAHOO – What you yell after selling it to some sucker for $240 a share. Windows 7 – What you jump out of when you’re the sucker that bought Yahoo for $240 per share. Windows 7 – What you jump out of when you’re the sucker that bought Yahoo for $240 per share.

9 If you’d invested $1,000 in 1950 Perfect timing and missed 20 worst months through June 2008 Perfect timing and missed 20 worst months through June 2008 –$800,000 If you’d missed the 20 best months If you’d missed the 20 best months –$11,500 Let it ride Let it ride –$73,000

Rule 10% Savings 10% Savings 20% Debt not including mortgage 20% Debt not including mortgage 30% Debt including mortgage 30% Debt including mortgage

11 10 Top Finance Tips Pay yourself first and spend less than you make. Pay yourself first and spend less than you make. Stick to a budget. Stick to a budget. Pay off credit card debt. Pay off credit card debt. Contribute to a retirement plan. Contribute to a retirement plan. Have a savings plan. Have a savings plan. Invest. Invest. Maximize employee benefits. Maximize employee benefits. Review your insurance annually. Review your insurance annually. Update your will. Update your will. Keep good records. Keep good records.