Embed Size (px)
Citation preview
Money ManagementDavid Roach
Money Education Center
Texas A&M University
Money and Emotions
Managing our finances should evoke
emotional reactions. The key is in which
emotions. Confidence instead of fear,
empowerment instead of distress.
The Hidden Perk
Being financially literate can be a huge advantage for you – both personally and professionally.
Among Professionals
70%Say Financial stress is their most common cause of
stresshttp://www.learnvest.com/wp-content/uploads/2014/12/LearnVest-Financial-Confidence-Curve.pdf
Remember: I before E
Income > Expenses
Tip the scale in your favor!
Are They Really Rich?
Sued for $300,000
Credit Card Debt
(2016)
Bankruptcy (2003)
$38 Million Debt
Bankruptcy (2009)
Owed IRS $13 Million
3 castles, 2 islands,
1 dinosaur skull,
1 jet, 2 yachts,
50 sports cars
Bankruptcy (2015)
Must pay $23
Million to Creditors
You are Your Best Investment
“The problem is not how much we
earn…it’s how much we spend!”The Automatic Millionaire by David Bach
Why Budget Your Money?
Budgeting Your Money…
• Puts You in Charge of Your Finances• Gives You More Confidence• Makes You Feel Less Guilty• Allows You to Prioritize• Enables You to Track Your Spending• Allows You to Control Debt• Gives You a Better Opportunity to Save• Helps You Accomplish Financial Goals!
Short Term
• New Phone, Spring Break Trip, Car Repair
Medium Term
• Establishing an Emergency Fund, Wedding
Long Term
• Dream Home, Repay Student Loans, Retirement
How to Do It
1. Establish Your Financial Goals
A Debt Free Life
Paying an Extra
$50 a Month
Paying an Extra
$100 a Month
Principal $60,000.00 $60,000.00
Required Monthly
Payment$645.23 $645.23
Extra Monthly
Payment$50.00 $100.00
Total Interest
Saved on loan$1,715.48 $3,118.06
Years to Pay Back
Loan9.1 8.3
Save! Save! Save!
• Start with Small Goals
– $5 a week and build up from their
– Saving 15-20% of your income is ideal
• Invest time in your finances
– Awareness is key
– Start tracking your expenses
• Establish an Emergency Fund!
Emergency Fund• Recommend $1,000 for students
• Professionals eventually need 3-6 months of
expenses
How to Do It
Identify Your Sources of Income
• Grants/Scholarships/Loans
• Family
• Work Income (After Taxes)
• Other Income
How to Do It
Fixed Expenses (Flat rate bills) Variable Expenses (Change each month)
\\
Identify Your Expenses
Understandable
Easy
Quick
Can’t Eliminate All Fun
Needs Some Flexibility
Discipline
Right for You!
What is Required for a Budget to Work?
What is possibly the most
popular online budgeting
website?
Financial Quiz Question 1
Title
Mint.com
Personal Capital
You Need a Budget (YNAB)
Your Bank’s Mobile App
Excel Budget Sheets
SALTTM
Envelope Method
Budgeting Options
Online Budget Resources
Track and Compare Your Income and Expenses
Title URL Information
Mint www.mint.com •Track your bank
accounts, credit cards,
investments, and loans
graphically.
•Automatically tags
expenses.
* Before deciding which website to use, make sure that you look into all
of the security information to make sure that you feel completely safe
uploading your banking account information.
How to Do It
Track and Compare Your Income and Expenses
You Can Do It!
• What is the cost of two Trailer Park tacos
and a drink at Torchy’s in College Station?
a) $8.98
b) $9.80
c) $10.83
d) $11.80
1 Chicken Taco - $3.75 x 2
Soda - $2.50
Plus tax
Financial Quiz Question
How to Do It (continued)
Identify and Neutralize Your Latte Factor(s)
“A latte spurned is a fortune earned”
People magazine
• What is a Latte Factor?
– All unnecessary expenditures that you buy
each month
• How do you find a Latte Factor?
– Track your expenses
– Am I buying too much of something?
– Do I really need this item?
Latte Factor Examples
What is the cost of a Grande Caramel
Macchiato at the local Starbucks?
a) $4.50
b) $4.73
c) $4.89
d) $5.03
$4.65 + $0.38 tax = $5.03
Financial Quiz Question 3
Example: Buy a coffee every morning at the local coffee shop for a total of
approximately $5.00.
Month 1 - $150
Month 2 - $300
Month 3 - $450
Month 4 - $600
$0
$100
$200
$300
$400
$500
$600
$700
Month 1 Month 2 Month 3 Month 4
$600 x 8 Semesters = $4800!
Save vs. Spend
The biggest barrier to becoming rich is living like you’re rich before
you are.
-Knight Kiplinger
About the Center
We Can Teach Aggies About…..
• Walk-in Advising
• Appointments
• Presentations &
Resource Tables
Like & Follow Us!
Questions? Contact Us!linkedin.com/in/david-roach-6a555ba2
