1. STEPS TO FINANCIAL INDEPENDENCE AS YOUNG ADULTS

2. WHAT IS FINANCIAL INDEPENDENCE?
Financial Independence is a term generally used to describe the state of having sufficient personal wealth to live indefinitely without having to work actively for basic necessities.
- Wikipedia

3. ARE YOU ON THE RIGHT PATH?
As of 2012 the personal saving rate in the United States is 3.7% , a decline from past years

4. Household and consumer debt is rising at an alarming rate leaving us with 2, billion dollars in debt as of today.

5. Costs of living are also increasing from food prices, gas, and housing costs.

6. HOW CAN YOU REACH FINANCIAL INDEPENDENCE?
Financial independence is basically made up of:
Not relying on others to pay your bills
Freedom from all debt
Freedom from having to work for income

7. TRACKING YOUR INCOME
The first step towards financial independence is being aware of where your money is going.
WRITE IT DOWN!

8. BUDGETING
Next comes budgeting your money. Now that you know what your money is buying you can decide to remove unnecessary costs and lower others. Include categories such as rent, gas and food and how much money will go towards each one. Set financial short term goals and long term goals and stay on track!

9. SAVING
In your budget include a category for savings and put as much money in it as you can each month. MP Dunleavey, author of “Money Can Buy Happiness” suggests using the 60% solution which means getting your expenses to total 60% of your income and leave 40% for saving. Then out of the 40% allocate 10% for fun/spontaneous expenses, 10% for retirement, 10% towards an emergency fund and 10% for unexpected expenses.

10. LIVE BELOW YOUR MEANS
Just because you can afford making the payments on that brand new car doesn’t mean you should buy it. Living below your means allows you reach your savings goals, stay out of debt and have an emergency fund for unexpected expenses. It also helps to decrease stress from financial worry and allows you to spend more time doing the things you enjoy.

11. SET GOALS
Write down your financial goals. Set goals that are S.M.A.R.T. Being rich some day is not a S.M.A.R.T goal but saving enough for a summer abroad by next summer is. Make your goals realistic and specific and post them in a place where you will see them everyday.

12. PAY OFF DEBT SET A S.M.A.R.T GOAL PUT AWAY THE PLASTIC REDUCE EXPENSES
USE CASH

13. INVEST
Invest in your future. Save at least 10% of your income for retirement. The sooner you start the more you will have by the time you retire.

14. STAYING ON TRACK
Keep your goals in mind so you do not fall back into debt or saving less than you can.
Consider the big picture
Set S.M.A.R.T goals
Find yourself a “money buddy” for support
Utilize the latest tools from financial websites, spread sheets, calculators, and books about finance.

15. WORKS CITED Slide #1: Wikipedia.org
Slide #9: “Money Can Buy Happiness” by MP Dunleavey
Slide #10: Quote “We buy things we don’t need with money we don’t have to impress people we don’t like” by Dave Ramsey
Slide #11: Article “Personal Finance 101 for College Students” by Sarah Smith(
Slide #14: “Five tips for getting and staying on track with your money” (