releasing the chains of debt

Releasing the Chains of Debt

The Path to Financial Freedom

April 27, 2016Darren Huff - Financial Peace University - Smart Money

Week1

Darren Huff

[email protected]


Week2

Zero Based Budgeting

Debt Snowball

Building Wealth


Week3

Debt has been marketed to us in so many forms and so aggressively since the 1960s that it is hard

to imagine living with out it.

It requires a PARADIGM SHIFT.• Saving must be a PRIORITY

• You must pay yourself FIRST

• Saving money is about EMOTION and CONTENTMENT

• Money is AMORAL


Week4

Personal Cash Flow (aka Budgeting)


Week6

“You will either learn manage money

or the lack of it will always manage

you!” – Dave Ramsey


Week7

• Money is Active

– That’s why we call it Currency

• You must do a WRITTEN cash flow plan every month.

• You have to balance your bank account

• Overdrafts is CRISIS LIVING


Week8

Budgeting Basics

Why We Don’t Do Budgets

Why we hate the “Budget” Word

• It has “Bread” and “Water” Connotation

• You never had a budget that really worked

• Paralysis from FEAR of what they will find

Why They Have Not Worked

• LEAVE things OUT

• You OVERCOMPLICATE your plan

• You don’t DO them

• Don’t actually LIVE on it


Week9

Why We Should Do Cash Flow Plan

Build the Four Walls For Your Family

1. Food

2. Shelter

3. Basic Clothing

4. Utilities and Basic Transportation

MANAGED MONEY WILL FEEL LIKE GETTING A RAISE!

An Active Written Plan Will

• Remove money fights

– #1 Reason for divorces

• Will remove GUILT, SHAME, and FEAR of buying necessities.

• Identify OVERSPENDING

• Will give YOU the POWER and CONTROL over your money


Week10

Zero Based Plan

“Zero –Based” does not mean your bank account should hit Zero. Keep a pad or

buffer of around $100 in your account to catch any little budget missteps.


Week11

April 27, 2016 Darren Huff - Financial Peace University - Smart Money Week 12

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Week13


Week14

Being on Budget DOES NOT mean you can’t have fun

and enjoy life.


Week15

https://www.everydollar.com/

https://www.everydollar.com/

Dumping Debt


Week16


Week18

Just as the rich rule the poor, so the borrower is

servant to the lender .

• People spend 12-18% more when using credit cards instead of cash.

• McDonald’s reports its average ticket is $7 when people use credit cards versus $4.50 for cash.

• More than 100 Million Americans carry a credit card balance

• Contrary to popular belief, you can rent a car and make online purchases with cash…Debit Card

• Teens are the biggest target of credit card companies.


Week19

Credit Cards

• New vehicles lose about 60% of it’s value in the first 4 years

• Most any thing with a motor will go down in value

• Leasing is the most expensive way to finance a vehicle

• The shop and finance office are the most profitable areas of a dealership

• Buy a reliable used car and pay cash

• Rule of thumb:

• The combined value of all your cars, motorcycles, boats and other vehicles should NOT be more than half your annual income.


Week20

Vehicles

• Home equity loans should never be used for emergencies.

• Don’t go into debt for emergencies

• Debt consolidation saves little to no money because you are typically throughing low interest loans into the deal.

• Smaller payments typically mean longer time in debt

• Debt consolidation is a CON


Week21

Lending

• Finally

• I Am

•CASH

•Only


Week22

FICO = “I LOVE DEBT SCORE”


Week23

Staggering Statistic Debt Data – Source: Nerdwallet


Week24

Gazelle Like Intensity

Stop borrowing

Save

Sell something and everything

Find a part time job


Week25

DebtOUT of

Steps


Week26

Building Wealth


Week27

“Money is like manure: Left in one pile it stinks—spread it around and it

will make things grow!”

– Dave Ramsey


Week28

You Should be Debt Free (excluding mortgage)

Have 3-6 Months of Living Expenses Should

Be in place


Week29

A Plan to Building Wealth-Before You Start

• Diversify – lower your risk– Good growth mutual funds

• Invest 15% of your household income*1. Start with Employer match and max

2. Roth IRA

3. Go Back to your employers plan

4. Other

*=Before doing any investing, check with a licensed financial planner.


Week30

A Plan to Wealth

• Example of Diversification

– 25% Growth and Income Funds

– 25% Growth Funds

– 25% International Funds

– 25% Aggressive Growth Funds

• Always use tax favored qualified plans

*=Before doing any investing, check with a licensed financial planner.


Week31

A Plan to Wealth


Week32

Building Wealth

Building WealthBuilding Wealth


Week33


Week34

“If you want something you’ve never had, you must be willing to do

something you’ve never done!” –Thomas Jefferson


Week35

Darren Huff

[email protected]


Week36

releasing the chains of debt

Economy & Finance