1. Building Your Savings

2. Importance of Saving Money Short-Term: –Emergency cushion: experts recommend 3-6 months worth of living expenses –Short Term goals: trips/vacations, household purchases, new clothes, etc. Long-Term: Attain Financial Goals –Financing a college education –Buying a house –Buying a car –Retirement

3. Saving Money and Investing Always consult with a professional financial planner to determine your investing goals The value of your savings/investments is determined by 3 basic factors: –Amount of money you put in –Interest Rate –Time Hard to control interest rate on your investments, so focus on the amount of money you are putting in and start investing for your future early

4. Importance of Time Started saving for retirement at age 20: Initial investment: $2,000 Annual contribution: $500 Interest rate: 10% Years until age 65: 45 Value of investment at 65: $541,178.63 Waiting ten years could cost you hundreds of thousands of $ Started saving for retirement at age 30: Initial investment: 2,000 Annual contribution: $500 Interest rate 10% Years until age 65: 35 Value of investment at 65: $205,268.28

5. Saving Money First – Make a goal Understand the sacrifices needed to attain that goal Develop a timeframe

6. Saving Money Add your saving goal to your budget How to add to your monthly budget: 1. How much do you want to save? 2. How long is the timeframe in months? 3. Saving Amount ÷ # Months = monthly budget amount 4. Treat this monthly amount as an expense towards your goal

7. Money Saving Tips Try generic brands Master the ten second rule Take public transportation Go to a matinee Make your own coffee Save your coins! Start emergency fund Use ebay/craigslist/freecycle