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MONEYMaking it & Managing it
MONEYMaking it & Managing it
2008Your Year to Get FINANCIALLY FIT
2008Your Year to Get FINANCIALLY FIT
Reality CheckReality Check“For every dollar earned, the average
American family spends $1.22”
“For every dollar earned, the average
American family spends $1.22”
Debt challenges???
You are not alone!
Debt challenges???
You are not alone!
Are you out of control?Symptoms of short-term debt:
Are you out of control?Symptoms of short-term debt:
• More month than money.
• No savings for emergencies.
• Charging items to delay paying for them.
• Continually “rolling” debt from one card to another.
• Making consolidation loans to pay off credit card debt.
• More month than money.
• No savings for emergencies.
• Charging items to delay paying for them.
• Continually “rolling” debt from one card to another.
• Making consolidation loans to pay off credit card debt.
Wait… There’s more!Wait… There’s more!
• Does your total debt consume more than 35% of your gross income?
• Is your car note greater than 15% of your take home pay?
• Have you been late on any payment in the last 6 months?
• Do you know how much you owe?
• Does your total debt consume more than 35% of your gross income?
• Is your car note greater than 15% of your take home pay?
• Have you been late on any payment in the last 6 months?
• Do you know how much you owe?
It’s time for a CHANGE!It’s time for a CHANGE!
Steps you can take:Steps you can take:
• Confess your Mess!
• “Plastic Surgery”!
• A written plan.
• Pay ‘em down!
• Cash only!
• WAIT!
• Wise financial counsel.
• Confess your Mess!
• “Plastic Surgery”!
• A written plan.
• Pay ‘em down!
• Cash only!
• WAIT!
• Wise financial counsel.
Are you ready for the GOOD NEWS???
Are you ready for the GOOD NEWS???
You are the CFO of your Mary Kay organization!You are the CFO of your Mary Kay organization!
100%
Section IRestock
50%
Section 25%
PCP5%
State TaxVA = 5%
Personal profit &exp. 40%
How it works in “real time”:How it works in “real time”:
You sell $100 of Mary Kay and collect $105.00Restock with 50% = $50.00
Tax reimbursed with 5% = $5.00Section 2 is 5% = $5.00
PCP is 5% = $5.00
You sell $100 of Mary Kay and collect $105.00Restock with 50% = $50.00
Tax reimbursed with 5% = $5.00Section 2 is 5% = $5.00
PCP is 5% = $5.00
Start with Weekly Expenses!Start with Weekly Expenses!
• Gas for business = $30
• MK weekly event = $5• Loan payment = $120
or $30/week• Cell phone = $30 or
$8/week• Internet = $50/mo or
$13/week• Total = $86
• Gas for business = $30
• MK weekly event = $5• Loan payment = $120
or $30/week• Cell phone = $30 or
$8/week• Internet = $50/mo or
$13/week• Total = $86
The Mary Kay VariableYou write your own paycheck!
The Mary Kay VariableYou write your own paycheck!
6 faces per week
$100 per face = $600 in new sales. Tax=$30
50% = $300
5% = $ 30
5% = $ 30
60% = $360 + $30 is for restocking.
40% = $240
Less weekly expenses of $86 = $154
Monthly
$1200 ws Section 1
$120 for Section 2
$120 for PCP
Profit after expenses =
$616 for 8-12 hours/week
Director Expenses
• Leadership Expenses• Director Suit• Travel expenses• Copying expenses/newsletter• Meeting Room expenses• Prizes/ Promotions – (No more than 5% of profit
you will earn)
• Phone• Assistant fees• Office Supplies• Postage• Red Jacket Club dues or other fees
Director Income Potential• 50% - Personal sales – new & residual• 13% - Team Building Check• Team Building bonus = $100 per qual.recr.• Unit Development bonus of $300 or $500 for Unit
recruits.• 9-13% - Unit commission• Unit Volume bonus of $500+• Star Consultant Bonus of $300,$400,$500• Wellness Award Bonus = $750, $1200, or
$1800• $1,000 - Contest bonuses for Cadillac, Higher Circles,
New Director bonus opportunities • Value of MK Career Car• Offspring Commissions of 4-6%
Suggested Plan for Spending
• Personal Sales = Unit & Business expenses
• Director Commission = Family Expenses
• Bonus Checks = Investment/ Insurance
• 13% Recruiting Checks = Personal fun for you & your family, vacations, clothing….
Money Mess-UpsA downward spiral
Money Mess-UpsA downward spiral
Too muchSection 2Too muchSection 2
Stealing from your businessStealing from your business
Missing productbonuses
Missing productbonuses
Multiplesmall orders
Multiplesmall orders
Ordering when it’s not in your 60%
Ordering when it’s not in your 60%
Keep GrowingKeep Growing
The future of your financial security is in Team BuildingThe future of your financial security is in Team Building
• Month 1 = $1,000 X 4% = $40
• Month 2 = $1,000 X 4% = $40
• Month 3 = $1,000 X 4% = $40
• Month 4 = $1,000 X 4% + $50 = $90
• Month 5 = $1,000 X 9% + $50 = $140
• Do this for a year to reap $1330Doesn’t include repeat orders or 13%!
• Month 1 = $1,000 X 4% = $40
• Month 2 = $1,000 X 4% = $40
• Month 3 = $1,000 X 4% = $40
• Month 4 = $1,000 X 4% + $50 = $90
• Month 5 = $1,000 X 9% + $50 = $140
• Do this for a year to reap $1330Doesn’t include repeat orders or 13%!
People who soar, are those who
refuse to sit back and wish things would change.
Charles R. Swindoll
People who soar, are those who
refuse to sit back and wish things would change.
Charles R. Swindoll