1. Getting Over Living Paycheck-to-Paycheck

2. Seven Steps.. 1.Make sure income exceeds expenses 2.Maximize 401K or other matched savings 3.Establish an emergency fund 4.Pay off high cost credit 5.Consider purchasing a home 6.Maximize tax sheltered opportunities 7.Develop specialized investments

3. Emergency & Unexpected Expenses Emergency Medical Legal Auto repair Home or property repair emergency Unanticipated major appliance replacement Monthly living expenses when income is lost Overdraft of checking account Unexpected Expense Invitation to an event On the job expenses Fundraiser at childs school Birthday gift Unplanned purchase

4. Unplanned expenses often cause families to live paycheck-to- paycheck. Then they cant deal with real financial emergencies.

5. Where to find the money… Plan spending Identify and stop spending leaks –Keep a record of your spending Pay yourself first Sell something you can do without Take a second job Practice being frugal Other possibilities –Tax refund –After installment loans are paid up, continue to pay yourself. –Bonuses –Contract work

6. Plan spending Fixed expenses –Housing –Utilities –Credit payments –Auto and other payments –Family care –Insurance Controllable expenses –Savings –Food –Household expenses –Personal expenses –Transportation –Entertainment

7. Plan spending Seasonal expenses –Property taxes –Insurance –Auto tags and registration –Birthday gifts –Vacations –Holiday expenses

8. Track spending to stop money leaks Pocket record Receipt method Tracking (handout)

9. Practice being frugal ItemCost/ # per mo. Cost/ month Cost/ year Invested for 5 yrs Soft Drink$.75/30$22.50$270$1,480 Cigarettes$3/20$60$720$3,948 Snacks$1/15$15$180$987 Lunch$5/12$60$720$3,948 Total$157.50$1,890$10,363

10. Trimming Expenses $Pack lunch for work or school $Shop for store or generic brands $ Use the public library $Choose free recreational activities $Check resale shops or garage sales for bargains $Eat out less often $Handle home maintenance and repairs yourself $Use public transportation when possible $Take advantage of free activities

11. Spending your Money Developing a Personal Spending Plan will show you… $What money is coming in during the next weeks or months $How much you spend on the basic needs, fixed and variable $How much you need to set aside for periodic or unexpected expenses $What is left over for your wants or goals