1. John Doe Certified Consumer Credit Counselor Steps to Financial Freedom PRESENTED BY GREENPATH How do you set financial goals? How do you create a budget? How do you use credit wisely?

2. STEP 1: YOUR MONEY PERSONALITY Turn to page 2 in your workbook.

3. STEP 1: YOUR MONEY PERSONALITY Turn to page 2 in your workbook. 1.List products and services you spend your money on 2.List ways are you a “good” spender 3.List changes you would like to make in your spending habits? Discover your money personality:

4. How do I set financial goals?

5. STEP 2: SETTING GOALS Turn to page 3 in your workbook. Specific Measureable Reasonable and Realistic

6. STEP 2: SETTING GOALS Turn to pages 3-4 in your workbook.

7. STEP 2: SETTING GOALS Turn to page 4 in your workbook. 1.What are some goals you would like to accomplish within the next 1 to 2 years? 2.What are some goals you would like to accomplish in the next 2 to 5 years? 3.What are some goals you would like to accomplish in more than 5 years? List out your short, mid and long-term goals:

8. How do I create a budget?

9. STEP 3: BUDGETING Turn to page 5 in your workbook. 1.Income A. Gross vs Net 2.Expenses A.Fixed B.Variable C.Periodic 3.Debts

10. STEP 3: BUDGETING Turn to page 5 in your workbook. Once you have created your budget, be sure to compare it to the financial guidelines financial experts recommend. Most people tend to underestimate their expenses by about 25%.

11. STEP 4: SAVING TO ACHIEVE Turn to page 5-6 in your workbook. Make it part of the budget Start with an emergency savings account Save to make most purchases

12. STEP 4: SAVING TO ACHIEVE Turn to page 6 in your workbook. Calculate your emergency savings

13. What are some ways I can use credit wisely?

14. STEP 5: USE CREDIT WISELY Turn to page 6-9 in your workbook. Good debt, bad debt Review your credit report Handling debt problems

15. STEP 6: HOME SWEET HOME Turn to page 10-12 in your workbook. The American Dream How much can I buy? Qualifying ratios

16. STEP 6: HOME SWEET HOME Turn to page 10-12 in your workbook. Calculate your qualifying ratios: If you don’t own a home: 1)How much house can you afford? 2)How’s your debt to income ratio? If you own a home 1) How do your ratios look if you were to buy a house today? Housing debt-to-income ratio = 28% of gross income Monthly debt-to-income ratio = 36% of gross income

17. STEP 7: INVEST FOR YOUR FUTURE Turn to page 12-13 in your workbook. Stocks, bonds, and cash Replenish emergency savings CD’s and saving bonds IRA, 403(b), 401(k), mutual funds Tax vs. tax-advantaged

18. STEP 8: TAKE ADVANTAGE OF TAX ADVANTAGES Turn to page 14 in your workbook. Tax-free vs. tax-deferred Securities Home equity loans Pre-tax dollars Charity

19. STEP 9: INSURANCE Turn to page 14-15 in your workbook. Life Health Auto Disability Homeowners Renters Long term care Umbrella policy

20. STEP 9: INSURANCE Turn to page 14-15 in your workbook. Questions to ask yourself: Do you have enough coverage? Do you have too much coverage? Are there any gaps? What do you own of measurable value that you can’t easily or economically replace without insurance? Review your insurance plans and coverage annually!

21. STEP 10: KEEP GOOD RECORDS Turn to page 16-17 in your workbook. Home files- Keep it simple Write a financial plan

22. GOOD ADVICE Turn to page 17 in your workbook. Learn as much as you can on your own Communicate with family members Be smart, seek guidance Use available resources Have some fun

23. THANK YOU John Doe Certified Consumer Credit Counselor jdoe@greenpath.com