Financial Preparedness Plano Stake Preparedness Fair

Financial Preparedness What Counsel and Warnings Have Been Given To Us Regarding Family Finance : – “…Not to live beyond our means.” L. Tom Perry – “...Urging people not to run into debt.” Heber J. Grant – “…There is a portent of stormy weather ahead to which we had better give heed.” – “…Debt is a form of bondage. It is a financial termite.” Joseph B. Wirthlin

Financial Preparedness Financial Preparedness begins with paying an honest tithe – “The Lord will open the windows of heaven according to our need, and not our greed.” President Gordon B. Hinckley

Financial Preparedness Basics 1. Save Cash. (3-6 months of expenses) 2. Pay off debts. 3. Budget. (It all starts with cash flow). Crisis ( job loss, sickness or injury, early death, chronic nursing care) 1.Insuring your income (long term disability insurance) 2.Life Insurance (for each $1,000 month income: $250,000 of life insurance) 3.Long Term Care (current cost about $75,000 year) Growing your Assets 1.Take advantage of Employer Matching (401(k). 2.Diversification Among asset classes. (stocks, bonds, real estate, precious metals) 3.Diversification between tax deferred, tax free vehicles. (Roth vs Traditional) 4.Create a financial plan and stick to the plan. 5.Annually review the plan. (family changes, housing, job change, etc.) 6.Seek professional financial help? (Financial planning is critically important) Source: 12 step program to Prepare for a Financial Crisis, OJMgroup (ojmgroup.com) Resources: budgetworksheets.org One for the Money

Financial Preparedness Steps To Financial Preparedness – Use a Budget Verify Your Spendable Income Compute Your Average Expenditures Balance Income and Expenditures Record All Expenditures Balance Your Checkbook and Adjust Spending Eliminate Unnecessary Spending Power Down Your Debt Make Savings An Expense (Necessity) Create A Long Term Savings Plan