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

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

Balance Income & Expenses Income Statement Expense Statement Spending Plan Fixed Variable Periodic

Your Spending Plan Total Income - Total Expenses

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

Check Your Credit Report Equifax Experian TransUnion Credit Bureaus Online at:

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

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

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

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