John Doe Certified Consumer Credit Counselor Steps to Financial Freedom PRESENTED BY GREENPATH How...

John DoeCertified Consumer Credit Counselor

Steps to Financial FreedomPRESENTED BY GREENPATH

How do you set financial goals?How do you create a budget?How do you use credit wisely?

STEP 1:YOUR MONEY PERSONALITY

Turn to page 2 in your workbook.

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:

How do I set financial goals?

STEP 2: SETTING GOALS

Turn to page 3 in your workbook.

• Specific• Measureable• Reasonable and Realistic

STEP 2: SETTING GOALS

Turn to pages 3-4 in your workbook.

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:

How do I create a budget?

STEP 3: BUDGETING

Turn to page 5 in your workbook.

1. IncomeA. Gross vs Net

2. ExpensesA. FixedB.VariableC.Periodic

3. Debts

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%.

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

STEP 4: SAVING TO ACHIEVE

Turn to page 6 in your workbook.

Calculate your emergency savings

What are some ways I

can use credit wisely?

STEP 5: USE CREDIT WISELY

Turn to page 6-9 in your workbook.

• Good debt, bad debt

• Review your credit report

• Handling debt problems

STEP 6: HOME SWEET HOME

Turn to page 10-12 in your workbook.

• The American Dream

• How much can I buy?

• Qualifying ratios

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

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

STEP 8: TAKE ADVANTAGEOF TAX ADVANTAGES

Turn to page 14 in your workbook.

• Tax-free vs. tax-deferred

• Securities

• Home equity loans

• Pre-tax dollars

• Charity

STEP 9: INSURANCE

Turn to page 14-15 in your workbook.

• Life• Health• Auto• Disability

• Homeowners• Renters• Long term care• Umbrella policy

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!

STEP 10: KEEP GOOD RECORDS

Turn to page 16-17 in your workbook.

• Home files- Keep it simple

• Write a financial plan

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

THANK YOUJohn Doe

Certified Consumer Credit Counselorjdoe@greenpath.com