money matters
DESCRIPTION
PowerPoint presentation on the subject of managing family finances. Presented at Southwest Keys Boys & Girls Club of Austin, TX. in conjunction with Financial Fitness Greater Austin; sponsored by University Federal Credit Union.TRANSCRIPT
Provided byRon Ratliff, CPA
7703 North Lamar Blvd., Suite 128Austin, TX 78613(512) 206-4228
Money Matters: Keeping Track of Your Money
Granddad’s Coin Purse
Money Matters – How?Reaching milestones
Buying your first homeGetting marriedBecoming a parentStarting or buying a businessRetirement
Establish healthy creditCharacterCapacityCollateral
Other
How does it matter to you?Your lifestyle – the ability to live like you
wantYour peace of mind – you’re prepared for
difficult timesYour retirement – you know what you want
and you’re prepared to take advantage of opportunities
Your children’s education – a good education is the single most valuable gift a parent can give a child
Relating With Money
In his book, Making Love Last Forever, Gary Smalley identifies 5 key differences between men and women:
1. Men love to share facts, women love to express feelings.
2. Men connect by doing things, women connect by talking.
3. Men tend to compete, women tend to cooperate.4. Men tend to be controlling, women tend to remain
agreeable.5. Men tend to be independent, women tend to be
interdependent.
5 Behavioral Differences
The Emergency Fund:Men – “Boring…not sophisticated enough.”Women – “The most important key to our
financial plan.”Shopping:
Men get good deals by negotiating. Women get good deals by hunting.
Financial Problems:Men lose self-esteem, because with men money
usually represents a scorecard.Women face fear or even terror, because
usually with women money represents security.
Men, Women & Money:
Keeping Track of Your MoneyThe Simplified Spending Plan
A plan for every dollar before it arrivesKeeping a record
Write it down!Don’t over-complicate things – just be
consistentSupport one anotherAgree on a threshold that neither of you
will spend without discussing it with the other
Lock away your credit cards – stop digging yourselves deeper in debt!
Simplified Monthly Spending Plan
Income (Take-Home)
Income 1
Income 2
Income 3
Other
Other
Other
Total Income -
Expenses
Giving/Donations
Saving
Housing/Rent
Property Insurance
Water
Gas
Electricity
Garbage
Phone
Cell Phone
Internet Access
Car Payment
Car Insurance
Health Insurance
Gas & Oil E
Repairs & Tires E
Clothing E
Food E
Entertainment E
Miscellaneous
Miscellaneous
Miscellaneous
Total Expenses -
Equals $0.00
To Be Budgeted: -
Simplified Spending Plan
Income (Take-Home)
Expenses
ZERO
Recurring CostsExpenses
Giving/Donations
Saving
Housing/Rent
Property Insurance
Water
Gas
Electricity
Garbage
Phone
Cell Phone
Internet Access
Car Payment
Car Insurance
Health Insurance
Fixed & Recurring Costs
Envelope Expenses
Expenses
Gas & Oil E
Repairs & Tires E
Clothing E
Food E
Entertainment E
Variable Costs
Plan to Spend
Simplified Monthly Spending Plan
Income (Take-Home)
Income 1
Total Income -
Expenses
Total Expenses -
Equals $0.00 ZERO
Typical Family Expenditures
10%
33%
12%12%
5%
6%
5%5%
4% 8%
Giving
Housing
Food
Automobile
Insurance
Entertainment
Clothing
Savings
Medical
Miscellaneous
1. Always tell the absolute truth.2. Use the power of cash.
Cash is visual. Cash is emotional. Cash is immediate.
3. Be prepared to walk away!4. Shut up!5. Say “That’s not good enough.”6. Avoid the “Good guy, Bad guy” routine.7. Ask for the “free toaster”.
7 Basic Rules of Negotiation
Develop POP – (POWER OVER PURCHASES)
Wait overnight before making a purchaseCarefully consider your motiveNever buy anything that you do not fully
understand (KISS)Keep the “Opportunity Cost” in mindSeek wise counsel
Maintaining Control over Purchases
Are you a spender or a saver? How do you know this?
What advantages do singles have when it comes to finances? Disadvantages?
In a marriage, why should a spending plan be agreed upon by both partners?
Discussion Questions
Questions?