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• Your “Financial Planning” booklet
• A pen or pencil
• Develop a positive relationship to money
• Create a budget that works
• Develop a savings plan
• Learn about investing
1. What does money mean to me?
2. How do I feel about budgeting?
3. What are some of my savings goals?
4. What investing success have I had?
• What does money mean to me?
Power Happiness Self-worth Social status Freedom
• An exchange of energy
• A relationship takes understanding, patience, and time
• Begin with small steps
• Money comes in every month—your income
• Money goes out every month—your expenses
• Know where it all goes
• Spend less than you make
• Have an all-cash month
• Collect receipts
• Record everything
• Dry cleaning
• Parking charges
• Vending machines
• Magazines
• Postage
• Movie rentals
• Credit card finance charges
• Consider curbing your impulse shopping
• Try to maintain responsible credit
• Establish good credit
• Short-term savings
• Mid-term savings
• Long-term savings
• Sample needs:
Car, vacation, 6-month emergency fund
• Savings vehicles:
Savings accounts
• Types of investments:
Passbook savings account, money market, CDs
• Easy accessibility
• Sample needs:
New home, boat
• Savings vehicles:
Traditional savings account, investment account
• Types of investments:
Mutual funds
• Sample needs:
Retirement, college education
• Savings vehicles:
Retirement: 401(k), IRACollege: 529, Coverdell ESA
• Types of investments:
Mutual funds
• Retirement: 401(k) IRAs
• College: 529 Plan Coverdell ESA
• The Web site has more info at Retire.53.com
• Investing involves some risks
• Risk can be managed Time horizon Diversification Asset allocation
• The amount of time you have before you need to begin withdrawing money
• Longer time—more risk you can take
• Shorter time—less risk you can take
• Put money into more than one investment
• Mutual funds are automatically diversified to help you manage risk
• Spreading your investment dollars over different types of investments
• Investment types: Stocks Bonds Cash equivalents
• Developing a positive relationship to money
• Creating a budget that works
• Developing a savings plan
• Learning about investing strategies
• Make the commitment to start a budget
• Begin your savings account
• Increase your 401(k) contribution
• Consolidate your retirement accounts