Surviving inTough Economic Times

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					Sur viving in Tough Economic
             Times
          National Conference of Bankruptcy Clerks
                             June 14-16, 2011

                           Saundra Davis, MSFP




  235 Montgomery Street, Suite 470 ◊ San Francisco, CA 94104 ◊ (415) 413-7243
                                             Surviving in Tough Economic Times 2011




                       Agenda
                         The “New” Economy
                         How do we Survive and even THRIVE?
                            ◦ What? - Where are we now?
                            ◦ So What? - What matters most?
                            ◦ Now What?
                               Develop a Spending Plan
                               Build an Emergency Fund




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Sage Financial Solutions | 235 Montgomery Street, Suite 470 San Francisco, CA 94104
                 Surviving in Tough Economic Times 2011




         Everything Affects Everything




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NOTES:


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                                                 Surviving in Tough Economic Times 2011

Financial Health Checkup
Describe your level of satisfaction using a scale of 0 – 5; select 0 if the statement is not a priority for you and
does not impact your level of financial satisfaction.

                                                            N/A       Dissatisfied               Satisfied
       I am satisfied…

       ...with the way I handle money                         0        1        2       3       4        5

       …with my ability to meet my financial obligations      0        1        2       3       4        5

       …with my career choice                                 0        1        2       3       4        5

       …with my current income potential                      0        1        2       3       4        5

       …with the level of debt that I carry                   0        1        2       3       4        5

       …with the extras I can buy for myself or others        0        1        2       3       4        5

       ...with my level of financial education                0        1        2       3       4        5

       …with the level and quality of insurance I have        0        1        2       3       4        5

       …with the amount of money I save regularly             0        1        2       3       4        5

       …with the amount of money I invest regularly           0        1        2       3       4        5

       …with my current investment choices                    0        1        2       3       4        5

       …that I am on track to build a retirement nest egg     0        1        2       3       4        5

       ...that I know what I want to do in retirement         0        1        2       3       4        5

       …with my current level of employee benefits            0        1        2       3       4        5

       …with my style of managing my financial records        0        1        2       3       4        5

       …with my plans for my children’s education             0        1        2       3       4        5

       …with my legacy planning including charitable          0        1        2       3       4        5
       intent

       …with how I respond emotionally to my money            0        1        2       3       4        5
       issues

       …with my ability to communicate financial              0        1        2       3       4        5
       concerns
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Sage Financial Solutions | 235 Montgomery Street, Suite 470 San Francisco, CA 94104
                         Surviving in Tough Economic Times 2011




         Know Thyself (and thy financial position)
            Prepare Financial Statements and
             update them regularly:

             ◦ A personal balance sheet is a statement of your
               financial position on a given date.

             ◦ Income statement states where your money
               has come from and where it has gone over a
               period of time.



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NOTES:



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                                            Surviving in Tough Economic Times 2011




                      Check Point!
                          Financial health check up

                          Top Three Financial Concerns

                          Describe financial success or well-being




  NOTES:


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Sage Financial Solutions | 235 Montgomery Street, Suite 470 San Francisco, CA 94104
                        Surviving in Tough Economic Times 2011




         Reserve and Emergency Saving
            Separate savings accounts according to goals
             (save/spend and save/don’t spend).


            Set savings targets - cover living expenses for 2
             - 3 months
             ◦ Amount needed is determined from spending plan.


            Money should be placed into safe account with
             easy access.




NOTES:


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                                            Surviving in Tough Economic Times 2011




                      How?
                        The 10% solution!
                        10% or more of your income until you
                         have the 3-month minimum.
                        If you can’t pay 10%
                           ◦   Pay 1 or 2 or 5% (whatever you can afford)
                           ◦   Gradually increase to 10% over time
                           ◦   Build the habit
                           ◦   Treat it as a monthly bill




  NOTES:


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Sage Financial Solutions | 235 Montgomery Street, Suite 470 San Francisco, CA 94104
                  Surviving in Tough Economic Times 2011




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2011 National Conference
  of Bankruptcy Clerks
         LIABILITIES PANEL
       BUILDING AN EMERGENCY           SURVIVING IN TOUGH ECONOMIC TIMES
                FUND
                                           FINANCIAL MANAGEMENT RESOURCES
  Emergency Fund = 3 to 6 months
  of expenses saved in a high APY,     Find local financial planners & connect with pro bono services:
  accessible account                   www.fpanet.org


               THE RULES               Money management tips:
   Pay only minimum payments           www.smartaboutmoney.org
    on your debts.
   Do not save for retirement.        Free credit reports and/or scores:
    *Exception: 401(k) matched         www.creditkarma.com
    by employer                        www.annualcreditreport.com
   Do not buy a home.
                                       Retirement Calculator:
                                       http://cgi.money.cnn.com/tools/retirementneed/retirementneed_plain.html
           THE 10% SOLUTION
   Save 10% or more of your           Education Cost Calculator:
    income until you have the 3-
                                       http://www.finaid.org/calculators/costprojector.phtml
    month minimum.
   If you can’t save 10%, save 1 or
                                       Housing Affordability Calculator:
    2 or 5% (whatever you can
                                       http://cgi.money.cnn.com/tools/houseafford/houseafford.html
    afford).
   Gradually increase to 10% over                         DEBT REDUCTION DIY
    time.
   Build the habit.
   Treat it as a monthly bill.          Gather all of the current
                                          information on your debts
       GOT DEBT? PAY THESE FIRST         Create a spreadsheet of
                                          your outstanding debts
  1.    Family Necessities               Choose which method will
  2.    Housing Related                   work best for your
  3.    Essential Utilities
                                          situation:
  4.    Car Expenses
                                          Avalanche – highest
  5.    Legally Required Payments
                                          interest first
  6.    Unsecured loans/credit cards
                                          Snowball – start small,
                                          increase over time
                                         Set targets
                                                                                        Find this tool at:
                                                                             http://www.vertex42.com/Calculators/
                                                                                 debt-reduction-calculator.html

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