1. Financial Fitness Living on What you Earn HealthKeepers, Inc. is an independent licensee of the Blue Cross and Blue Shield Association. ® ANTHEM is a registered trademark of Anthem Insurance Companies, Inc. The Blue Cross and Blue Shield names and symbols are registered marks of the Blue Cross and Blue Shield Association.

2. 2 Living on What You Earn Welcome & Introductions

3. 3 Agenda ▪The Psychology of Money ▪Track Your Spending ▪Create a Spending Plan (Budget) ▪Establish Goals ▪Pay Down Debt the Smart Way ▪Deciding When to Spend ▪Save for Emergencies and Planned Purchases ▪Credit ▪Conclusions

4. 4 Psychology of Money What does it mean to you? ▪Security ▪Ability to purchase ▪Status ▪power ▪Who shaped your values ▪Family ▪Friends ▪Why do You Spend

5. 5 Track Your Spending ▪If you don’t know where to start you can’t envision the finish line ▪Tracking your spending is easy and effective ▪Electronically or with paper and pencil record all of your spending ▪This means all of your spending for at least 30 days

6. 6 More Track Your Spending ▪Make sure you include “cash back” when using a debit card ▪You must record all of the credit purchases ▪Now find all of those bills that are not paid monthly like Insurance, utilities and Homeowner Association Dues ▪Divide them by the time period they cover and include that portion that equals 30 days

7. 7 Create a Spending Plan (Budget) ▪Electronically or with paper and pencil ▪Income and the dates that you receive your income ▪Fixed Expenses and the dates that they are due ▪Variable expense (student Loans, credit cards) ▪Daily or Weekly ▪Impulse purchases

8. 8 Debt Total up all of your ▪Fixed Debt (Mortgage or rent, car note, student loans) ▪Credit Card Debt ▪Personal Loans ▪What Percentage of your income does it consume?

9. 9 Debt Management – The Virtuous Circle ▪ Decide to understand and address your debt situation ▪ Know your debts and the terms of each ▪ Decide what your goals are ▪ Develop a plan to attack your debt ▪ “The Virtuous Circle” – it works!

10. 10 Reduce Your Debt – The Virtuous Circle Loan 1Loan 2Loan 3 Amount2000600010000 Interest Rate12%18%24% Term 96 months Minimum Payment32.51118.34255.14 Total Minimum Payments405.99 Add $100 Payment100 Total Payments505.99 Original Payment32.51118.34255.14 New Money100132.51250.95 New Payment132.51250.85506.09 New Term17 months43 months63 months

11. 11 Establish Goals Now that you know where your money goes and how much money you owe. ▪ Establish “Financial Goals” ▪ Pay down debt ▪ Save for an “Emergency” ▪ Save for Retirement ▪ Save for Investment

12. 12 Pay Down Debt the Smart Way ▪ Review Your Spending Plan to find $50.00 a month. ▪ Pay all of your credit card balances on time at least the minimum. ▪ Add the $50.00 to one of them each month until it is paid off. ▪ Then use all of that to pay down the next one until you do not carry balances over from one month to the next.

13. 13 Places to Find Savings ▪ Shop your automobile insurance every 6 months ▪ If you are receiving a large tax refund every year change the number of deductions ▪ Shop your cell phone contract ▪ Bring your lunch one day a week ▪ Eat out less ▪ Establish a brake for spending (need or want)

14. 14 Deciding When to Spend ▪ Stress Spending ▪ Impulse Spending ▪ Need vs Want ▪ Discuss big purchases with family ▪ Use cash only for discretionary spending ▪ Respect the bottom Line ▪ Establish a Cheat

15. 15 Save for Emergencies and Planned Purchases ▪ Short Term Pay down debt while saving for a rainy day ▪ Mid-term (2 to 6 years) Save for a larger down payment on a new car Save for New Home down payment Education Fund ▪ Long Term (6 – 30 years) Retirement Investments

16. 16 Credit Scores ▪ Know its importance ▪ How it is computed ▪ 30% Payment History ▪ 30% Credit Used ▪ 10% type of credit ▪ Fixed Interest ▪ Compounding Interest

17. 17 Get Help When Needed ▪ If more than 50% of your monthly pay is used to pay debt. ▪ If you are paying for necessities with credit ▪ If you are carrying credit card balances of more than $10,000 ▪ Credit Counseling ▪ Non-profit ▪ For profit

18. 18 Conclusions ▪ Have a positive balance at the end of the month ▪ Plan and control spending ▪ Track your spending ▪ Pay down your debt ▪ Hold family financial meetings regularly ▪ Let everyone participate ▪ Stay positive

19. 19 ▪4 Face-to-face counseling sessions ▪Legal/Financial consultations ▪Child/Eldercare consultation & referrals ▪Daily life resources ▪ID theft recovery ▪Free credit monitoring ▪Tobacco cessation: coaching & online ▪Comprehensive website o Resources o Self assessments o Live-connect feature o Health/wellness library o Legal forms Call (800) 346-5484 or go to our website at www.anthemeap.com Login: Mary Baldwin College How Your EAP Can Help – If you’d like to receive more support consider contacting your EAP

20. 20 Thank you! 20 Questions?