Calendar-Based Spending & Saving Plans Florida Saves 2020 “See Your Future Clearly” Anita...

Calendar-Based Spending & Saving Plans

Florida Saves 2020“See Your Future Clearly”

Anita McKinney, Duval County Extension Educator1010 N McDuff Ave

Jacksonville, FL 32254904-387-8850

mckinney@coj.net

Good Financial Health

Manage Risk

SaveManage Cash & Credit

Needs & Wants

Know Resources

Economic

Environment

Do you have good financial health?

What you will learn today:• Importance of managing money

– Reach goals– Helps build wealth, manage risk– Relieve stress

• Cash Management– Build a spending plan– Track expenses– Follow your plan

• Spending– Gaps, leaks and habits

Why plan your spending and

saving?

• Helps to see if you have extra cash or not enough each month

• Helps reduce stress• Helps you see if money comes in and goes out

at the right times• Helps you prepare for occasional or seasonal

expenses

The Planning Cycle

Set

Goals

Gather Information

Write a

Plan

Work the

Plan

Change the

Plan

Financial Planning Steps

1. Write SMART goals

2. Identify income amount for the month

3. Find all bills and due dates

4. Track expenses for a month

5. Write plan in money calendar

6. Stay on track with the UF Money Management Calendar

7. Plan time to review and make changes for next month

Set SMART Goals

It’s a big world out there and it’s hard to get to where you are going without a roadmap.

The shortest distance between two points… depends on where that second point is…

SMART Goals

Specific

Measurable

Adaptable

Realistic

TimelyGoal $

AmountStart

SavingBuy Date

No. Months

$ per Month

TV $600 6/1/11 11/1/11 6 $100

Rainy day fund

Write your goals in the piggy bank of the UFMoney Management Calendar

It’s YOUR choice!

• Spend and enjoy today

• Save and enjoy tomorrow

• Don’t forget to have enough set aside for an emergency!– 1 to 3 months of major expenses– Do it automatically from paycheck to an account of

your choice– Take Fresh Start and open an account

Identify Your Income• Show Me The Money!

– Salary or wages, cash assistance, benefits– Assets you can sell if money is needed for

debts or emergencies

• What if you don’t know how much it will be?– Plan with what you know!– If it varies, use the average or lowest amount

Write monthly income on page 9

Track Your Current Behavior

• List monthly bills and amounts• Keep track of your expenses for one

month to see where your money goes

Track Your Current Behavior• Spending Diary

– Keep a folded sheet of paper with you

• Keep all receipts• Decide the category of each expense• Write amounts in the UF Money Management

Calendar tables each day

Sun. Mon. Tues. Wed.

Thurs. Fri. Sat. Shopping list

Get Organized With Your Expenses

• Fixed• Flexible• Occasional

Write it down – better than just thinking it.

Get in the habit!

Write the Plan on Page 9• Fixed expenses

– Rent or mortgage– Utilities– Debt payments

• Flexible expenses– Food– Personal care– Clothes

• Add the amount you intend to save for your goals and rainy day fund

• Identify yearly totals of occasional expenses– Divide by 12 to get the monthly amount to save each

month

Organize Your Calendar• Write fixed expenses• Add utility due dates• Add paydays• Add other flexible expenses, if dated• Amounts and “pay dates”

Sun Mon Tue Wed Thu Fri Sat1 2

Rent $5003 4 5

Pay Utilities6Paid! $750

7Groceries

8 9Utilities Due

10 11Cable Due

12Pay Phone

13 14Groceries

15 16Phone Due

17 18Pay Car

19 Car Due

20Paid! $750

21Groceries

22Ballgame

23 24 25 26 27haircut

28Groceries

Use the Monthly Calendars• Bills

– Place bills in the calendar booklet for safekeeping– Depending on method of payment, plan to pay bill at least 2-3

days in advance– More time may be needed if bill is due on a weekend or Monday

• Match up – Timing of income– Timing of expenses

• Do you have a cash flow problem?– Ask to change due dates– Save money from previous income

Stick With Your Plan• Spending Diary

– Keep a folded sheet of paper with you

• Keep all receipts

• Write amounts in the UF Money Management Calendar tables each day

Sun. Mon. Tues. Wed.

Thurs. Fri. Sat. Shopping list

Review and Revise

• Add up amounts in flexible expense columns– Did you go over?– Did you spend less that you budgeted?

• Add up fixed expenses• Add fixed and flexible amounts together• Subtract total expenses from income• Did you stay within your plan?• Did you save the amount you need for

occasional expenses?

Increase Income/Resources

• Second job• Ask for a raise• Find a better job• Family member gets a job

• Learn to “do it yourself”

• Barter or trade services

Increase Income• Get new licenses/degrees/certifications

– This may require spending money to make money

• Personal exemption withholding from paychecks• Tax deductions

– Child Tax Credit– Earned Income Credit– Dependent Care Credit

• Get taxes prepared free, amend previous tax returns

Decrease Expenses

• Reduce or eliminate spending on “wants”

• Modify or reduce flexible expenses

– Carpool

– Limit eating out

– Grocery shopping

– Electric and water

• Can you change fixed expenses?

Check for Spending Leaks• Do you compare prices?

• Do you use coupons? Use advertising to your advantage?

• Do you think ahead about your needs?

• Do you take care of what you own and get full life from purchases?

How much should we spend?

Food 13-15%

Housing 32-42%

Child Care 15-25%

Clothing 3.8-4.2%

Personal 2-5%

Transportation 17-18%

Medical 6-7%

Education/Recreation

0-10%

Gifts/Contributions

0-10%

Misc./Emergency

2-10%

Savings 0-10%

Insurance 0-11%

On average, Americans spend the following percentages of their income in each category:

Percentages

• Divide amount you spend by the amount you take home– $450 (rent) divided by $1200 (income)

equals .375• Multiply answer by 100 to find per cent

– .375 multiplied by 100 = 37.5%

Is this per cent in the range for Housing?

How Little Expenses Add UpExample

Coke1/day

Vending Machine Bought at Store

$1.00/day $.42/day

$260/yr $105/yr

Save $155/yr.

Long-term Cost of My Habit?

Invested

Investment YieldYears

$155.007%

5 years

Total Invested = $775.00

Total Value = $954.00

Total Earned in 5 years = $179.00

In 30 years, you will have $7,262.00

Long-term Cost of Snacks

• $2.00 per day or $60.00 month– (Invest $60 month at 7% for 30 years)

– How much are those daily snacks costing you?

$157,489

Change Your Plan• Set a Monthly Money Date!

• If you have left-over money, pay on debts, save for next month or future

• If you spent too much, what will you cut back on next month?

• Accuracy ensures results

Totals for the Year

• Enter total monthly amounts for fixed and flexible categories on pages 34 and 35

• Were you over or under your budgeted amounts?

• Calculate your average monthly amounts for the year and use for next year’s plan

• Enter tax deductible expenses on the back cover

• Call 904-387-8850 for a new calendar

Have No Fear…Help is Here to Make Your Future Clear!

• Florida Master Money Mentors is the team to trust with planning your financial future!

Florida Saves 2020“See Your Future Clearly”

• Complete the surveys• Complete the request form for

a mentor if you want one-on-one help

Questions?