So, What’s this moneymoney thing all about?

Thoughts on Money

“Money frees you from doing things you dislike. Since I dislike doing nearly everything, money

is handy.” – Groucho Marx

“The government’s view of the economy could be

summed up in a few short phrases: If it

moves, tax it. If it keeps moving, regulate it. And

if it stops moving, subsidize it.” – Ronald Reagan

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• Self-employed people are 5 times more likely to be millionaires.

• Millionaires studied tended to have modest homes and bought used cars.

• Millionaires are educated, work hard, save money and make purchases carefully.

ProfileHOW to be a MILLIONAIRE

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*Six Steps to Controlling Your Assets

1. Take an inventory of your financial assets

2. Keep track of all your expenses

3. Prepare a budget

4. Pay off your debts

5. Start a savings plan

6. Borrow only to buy assets that increase in value.

SIX STEPS to CONTROL YOUR FINANCES

LG1

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*Prepare a Budget

• A household budget generally includes:

- Mortgage or rent

- Food and clothing

- Vehicles and furniture

- Insurance needs

- Other expenses

MANAGING YOUR HOUSEHOLD BUDGET

LG1

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*Tax Laws

• Taxes -- The way federal, state, and local governments raise money.

• Some forms of taxes:

- Income taxes: Fed & State

- Property taxes

- Sales taxes

- Excise taxes

- Social Security

- Medicare

TAXES

LG7

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Source: IRS, Statistics of Income 2008, www.irs.gov.

Tax LawsDO the RICH PAY TAXES?

How much is enough?LG7

Taxpayers % of Total Taxes

Top 1% 40% of total taxes

Top 5% 60% of total taxes

Top 25% 86% of total taxes

Top 50% 97% of total taxes

Bottom 50% 3% of total taxes

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In 2009 – 47% of American’s paid NO income tax

Personal Finance is all about one thing…

Ca$h Flow

Cash flow - from Wikipedia, the free encyclopediaCash flow is the movement of cash into or out of a business, project, or financial product.

It is usually measured during a specified, finite period of time.

Income

Expenses

Money isn't the most important thing in life, but it's reasonably close to oxygen on the "gotta

have it" scale. Zig Ziglar

BUT…it’s also about your

goals and objectives. There needs to be a plan to get

you to your destination.

Dreams are a good thing

• Are the subconscious giving us direction.

• Are not to be ignored• May surprise you in the

direction they take you.• Are not “stupid” ideas• Motivation for the soul.• Need to be documented so

the vision can be developed.

Goals and Objectives• The road map to get to the destination

• Quantifies the Dream

• SMART– Specific– Measurable– Attainable– Realistic– Timed

Where am I today?

Where do I want to go in the future?

How do I get to where I want to be in the future?

The Big Questions

In other words…

• Positive Ca$h Flow is about spending LESS than what you take in.

• Goals and Objectives are accomplished with positive cash flows.

• Negative Ca$h Flow is NOT desirable or sustainable.

• Ca$h Flow can be monitored and controlled with a plan [Budget].

• A budget is a money plan – giving every dollar a name and place.

• “Failing to plan [Budget] is planning to fail”.

So – what’s the plan?

• There are a lot of “experts” and gurus that offer the plan of the week.

• If they want your $$$ for their “secret plan”, run away!

• Look to KISS – keep it simple smarty

• Look for a life style, not a one-and-done plan.

• Don’t expect 7 day miracles

What to do???There are a lot of formulas,

experts, and to-do’s. How do you sort through the data and find

something that works?

One possible solution…

• A personal favorite of mine is Dave Ramsey.

• He offers simple solutions in “The Total Money Makeover”.

• A 7 step plan that you CAN do.

• You can get the book free at the library.

• A program offered thru many churches.

Follow-up thoughts

• The Ramsey plan is not the only plan, but it has a great proven track record.

• It drives to building manageable cash flow.

• It works toward your goals and objectives.

• Gives peace of mind.

• It’s an action plan.

A statement of fact:The preceding presentation

material is not that of a financial advisor. It’s just “Lessons in

Life” from a guy who has been there and done that.