presentation lite.2 hour

Financial Wellness lite

An introduction to personal financial wellness

What is personal financial wellness?

Ask yourself…

• Where am I now?• Where do I need to be?• How do I get there?• Who can help me get there?• How do I plan?• What do I need to do?• What will hold me back?

Personal Financial Management

Where do I start?

My Personal Budget Planner

Personal Financial Management

• Using your Personal Budget Planner• Setting up your Monthly Budget Planner• Daily Budget Diary• Envelope to keep transaction slips• Obtain a Bank Statement• Take 30 minutes• Month Two and beyond

Me and Debt• Dealing with Debt• Debt will hold you back• How did I get here?• ‘Good’ and ‘Bad’ Debt• The cost of credit• Pause and Think• Make sense of your debt…damage

report

Me and DebtNAME OF CREDITOR

OUTSTANDING DEBT BALANCE

MINIMUM MONTHLY REPAYMENT

INTEREST RATE

LOAN REPAYMENT START DATE

LOAN REPAYMENT FINISH DATE

CREDITOR 1

Me and Debt

‘My Debt Reduction

Plan’10 steps to reducing your debt

“DIY”

Me and Debt• Step One – Look yourself in the Mirror• your predicament – 4 options• reduce spending and adjust your

spending plan accordingly•debt review• refinance•default

• share your plan of action

Me and Debt• Step Two – Assess the damage • Put the following into a simple table –

Damage Report• identify all creditors• identify outstanding debt balances• specify minimum monthly repayments• loan interest rates• loan repayment start dates | finish dates

Me and Debt• Step Three – Monitor | Manage

spending• where do you spend your money?• track all spending on a monthly basis • identify trends and habits • keep ordered records• review your records against the budget

calculator• take any corrective action

Me and Debt• Step Four – Cut wastage out • get tough on yourself• identify ‘needs’ versus ‘wants’• remove the ‘clutter’ spending• cherish the simple things in life• coordinate/combine large purchases• review your insurance policies

Me and Debt• Step Five – de-clutter and reduce• convert disused goods to cash• book sale• linen and clothes• advertise on line such as Gum Tree

and EBay• advertise in local newspapers

Me and Debt• Step Six – Negotiate with the bank• keep a record of all bank statements and tally

up the charges• is the bank open to negotiation?• challenge the facility costs and charges• review what packages the bank offers | shop

around• refinance | restructure options | Debt

Consolidation? [cost of credit]

Me and Debt• Step Seven – Big Decisions • downgrade your car• cheaper more practical car | more fuel

efficient• cheaper insurance | running charges

• downgrade your house•move to a smaller more practical house• less upkeep | less expense

Me and Debt• Step Eight – Be goal orientated • determine | prioritise which debt to tackle• stick to the priority list • set a realistic and achievable payment plan• stick to the debt payment plan• close off accounts as you bring them up to

date• roll over debt payments - cascading

Me and Debt• Step Nine – Wipe the slate clean • contact a credit bureau for a credit profile• entitled to one free report a year • ‘blacklisted’? – could stick for up to 5 years• attorney can assist, but costly• alternatively try Legal Aid or Credit Ombud• keep proof of paying off | settling any debt

Me and Debt• Step Ten – Review | Reset• SPENDING PLAN is the most important tool • spending plan manages your spending

habits• sets a clear strategy • identifies how you spend• sets goals | boundaries | discipline• ensures that you stick to it

Savings and Investments• Moving Forward• savings | investments• risk and return• time• inflation• building blocks of investments

Savings and Investments• Moving Forward• short | medium | longer term

financial goals• creating and Emergency Fund• how much do I need for Retirement?

Considerations• Further financial planning

considerations…• get your monthly BUDGET in order• reduce and manage your DEBT• improve your SAVINGS | INVESTMENTS• set SHORT | MEDIUM | LONGER term

GOALS

Considerations• Further financial planning

considerations…• consider your ESTATE PLANNING• adequate INSURANCE cover• CHILDREN | FAMILY and money• find yourself a FINANCIAL GUIDE

Considerations• Where can we help you further?• Financial Planning Advice• Debt Counselling• Tax Consulting• One on One financial coaching

Thank you

This is just the beginning of your NEW financial journey

Visit us at www.motivatetoday.co.za