Management Millionaire Money Management Million Dollar Sailor A

Management Millionaire Money Management Million Dollar Sailor A personal wealth building program for Sailors and family members.

Management Millionaire Money Management Millionaires Manage Their Money Well Non-Millionaires Mismanage Their Money Well 2

Management Agenda g n i d n pe S a f o e s o p Pur Plan ls a o G T R A M S g n i t t Se ng i n n a Pl l a i c an n i F id m The a r Py r u o Y ng i p o l ial c e v n e a D Fin l a n Perso lan P 3

Management Money Management Excuses “I don’t have enough money to manage. ” “A budget will restrict my freedom. ” 4

Your Spending Plan Spending Your Money On Paper and On Purpose Gives Every Dollar a Name Means of Achieving Your Goals Management 5

Effective Financial Plans ▪ ▪ ▪ ▪ Management Guide and Servant Practical and Realistic Easy to Understand Reflects Wants and Needs Based on Current Income & Expenses Flexible Provides for Necessities & Fun 6

SMART Financial Goals Management pecific easurable ction-Oriented ealistic imely 7

Setting Millionaire Goals Weak Goal “I want to be rich!” SMART Goal “I want to have $1 M in assets by age 65 by investing $250 per month. ” Management 8 pecific easurable ction-Oriented ealistic imely

SMART Goal Management Pay off $4000 Credit Card Debt in Two Years • Use tax refund to pay highest interest credit card • Change tax withholding status and apply income to debt • Track all expenses • Reduce eating out to 2 times per month • Stick to my calling plan on my cell phone • Check out DVDs from the library 9

The Financial Planning Pyramid Management Real Estate Hard Assets VE S TM EN T LE V EL S Options, Commodities, etc. IN Stocks SAVINGS LEVEL MANAGEMENT LEVEL Reserve Adequate Income Bonds Emergency Controlled Spending Mutual Funds Goal. Getter Adequate Insurance

Developing a Personal Financial Plan Management Net Income: Assets – Liabilities 11

Budget or Cash Flow Income Savings & Living Expenses Management 12 Indebtedness

Monthly Income Management 13

Savings and Living Expense Management 14

Indebtedness ▪ ▪ ▪ Creditor Balance Due Monthly Payment Interest Rate Total Management 15

Financial Summary Management Surplus Deficit Debt-to-Income Ratio Total Monthly Debt Payments / Net Income x 100 16

Management Ideal Breakdown of Net Income OK to add credit Fully extended Overextended Seek assistance <15% 15 -20% 21 -30% >30% 17

Improving Your Plan Management 18

Spending Plan Management 19

Sources of Help ▪ ▪ ▪ Management Command Financial Specialist Fleet and Family Support Center Navy-Marine Corps Relief Society Bank or Credit Union Financial Counselors Consumer Credit Counseling Services 20

Financial Planning Worksheet Exercise Management 1. Complete Your Personal FPW 2. Calculate Debt to Income Ratio 3. List at least two options for improving your financial situation: • Increasing Income • Decreasing Expenses • Decreasing Indebtedness 21