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Six Ways to Increase Wealth. Laura Connerly, Ph.D. Assistant Professor. Wealth Recommendations. Balance income & expenses Calculate debt load Check credit report Know your credit score Save for emergencies Plan for retirement. Balance Income & Expenses. Income Statement - PowerPoint PPT Presentation
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Six Ways to Increase Wealth
Laura Connerly, Ph.D.Assistant Professor
Wealth Recommendations
•Balance income & expenses•Calculate debt load•Check credit report•Know your credit score•Save for emergencies•Plan for retirement
Balance Income & Expenses
• Income Statement• Expense Statement• Spending Plan• Fixed• Variable• Periodic
www.uaex.edu
Your Spending Plan
Total Income - Total Expenses $?$?$?
Calculate Debt Load• List monthly
payments:• Car 325• Student loan 100• Credit cards 75• TOTAL 525
• Divide by monthly net income:525÷2500=.21 OR a
21% debt load
• Credit Management factsheets:• Managing Credit• Financial Fitness Series:
Trim Your Credit Line• Credit Reports and
Credit Scores
www.powerpay.org
Check Your Credit Report
• Equifax• Experian• TransUnion
Credit Bureaus
Online at: www.annualcreditreport.com
Know your credit score
• Credit scores must be purchased• Each credit bureau varies• Two major types:• Fair Issac Corporation – FICO Score• VantageScore
Save for Emergencies
• Take Small Steps• Work toward 10%• Start and increase
• Build Emergency Fund• Critical safety net• Start with $1,000• 3 to 6 months of income
Plan for Retirement
Most people don’t save enough. Prepare for financial stability in later life:1. Maximize matched contributions to employer
provided plan2. Maximize allowed contributions to IRA3. Minimize debt to retire debt free4. Save and invest
www.extension.org
Six Ways to Increase Wealth
Laura Connerly, Ph.D.Assistant Professor