Steps to Financial Peace Stepping into Financial Peace

Steps to Financial Peace

Stepping into Financial Peace - “I love money! I love everything about it! I bought some pretty awesome stuff. Got me a $300 pair of socks. Got a fur sink. An electric Dog Polisher. A Gasoline powered turtleneck sweater. And of course, I bought some dumb stuff too!” – Steve Martin - “Financial Peace isn’t the acquisition of stuff. Its learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this. ” – Dave Ramsey

Stepping into Financial Peace! • • Budget Start to Save Focus on Debt Build your 3 -6 Month Cash Reserve Invest Pay off Home Give

Budget !! To get something that you’ve never had you have to do something you have never done! • Develop a Realistic Plan - 10% - Tithes - 15% - Savings - 25%– 30% - Housing - 10%-20% - Insurance - 10% - Transportation - 10%-15% - Utilities/Bills - 10% - Fun / Miscellaneous - 5 -10% - Clothes/Personal

Start to Save • Create your own Overdraft Protection - Make $1, 000 your $0 Balance - Avoid Overdraft and NSF Fees - Prepared for small emergencies

Focus on Debt! “Never Spend Your Money Before You Have It”- Thomas Jefferson • Consumer Debt - Credit Cards - Personal - Vehicles - Unsecured - Title / Pay Day Loans • Student Loan Debt

Build your 3 -6 Month Cash Reserve! • Plan for Emergencies - Loss of Job - Extended Illness - Large Unexpected Expenses

Invest 15 -20% of Household Income Retirement – 401 k / IRA • Pre-Tax / Tax Deferred • Employee Match • Up to $19, 000 yearly Contribution in 401 k for 2019 • Up to $6, 000 yearly for IRA Contribution • • After Tax Investments Bridge the Gap Stocks Mutual Funds Bonds Possible part of your 6 Month Reserve College Savings • MS Mpact • 529 Plans • Savings Accounts

Invest Retirement – 401 k / IRA • Pre-Tax / Tax Deferred • Employee Match • Up to $19, 000 yearly Contribution in 401 k for 2019 • Up to $6, 000 yearly for IRA Contribution

Invest Retirement – 401 k / IRA • Pre-Tax / Tax Deferred • Employee Match • Up to $19, 000 yearly Contribution in 401 k for 2019 • Up to $6, 000 yearly for IRA Contribution

Payoff Mortgage Get Ready to Give • • Children / Family Charities Church Community “Before you speak Listen. Before you write(Text)think. Before you spend earn. Before you invest, investigate. Before you criticize, wait. Before you Pray, forgive. Before you quit, try. Before you retire save. Before you die, give. ” – William Ward

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Steps to Financial Peace Emily Zizzi, CPA | Byrne Zizzi CPA, PLLC

A look back in time – American women couldn’t own property until vote until 1862 1920 or apply for individual credit cards until 1974.

1970 and 2015 2020 Between 1970 and 2015 women’s earnings grew by 75% compared to only 5% for men By 2020, women will control $22 T of wealth in the United States 57% of recent degree earners are women. Today

Did you know? • 61% of women would rather talk about their own death than money • Women’s #1 financial regret is not investing more of their money • 64% of women say they’d like to live to 100, yet over half fear they will run out of money if they do live that long • Typical retirement costs $738, 000, yet only 9% of American women have $300, 000 or more saved

So… How do we get there?

life journeys Women’s Early Adulthood Parenting Elder Caregiving Retirement Spousal Caregiving

Early Adulthood ü Create and stick to a budget ü Pay down your debt ü Plan for contingencies ü Start saving for retirement ü Think about your short and long term goals “It is not the big party that everyone assumes your twenties will be. It’s the first time you don’t have a road map or visual feedback as to where to go and how to get there. ” – Kelly Williams Brown, author of Adulting

ü Expect potential career interruptions Parenting ü Ensure adequate health, life and disability insurance coverage ü Create a will, power of attorney, healthcare proxy and medical directives ü Work with a financial advisor to reexamine your goals ü Plan ahead for children’s education; 529 plan ü Continue to contribute to your Health Savings Account (HSA) and retirement ü Be a financial role model to your children 3 out of 4 Parents put their child’s interest ahead of their retirement needs

Elder Caregiving ü Talk openly with family about their wishes ü Secure necessary legal authorizations & access important financial & health documents

ü Plan for longer life expectancy and higher healthcare costs ü Develop a strategy for Social Security and retirement savings ü Update estate plans (e. g. , will or power of attorney), healthcare proxy and medical directives Retirement

Spousal Caregiving ü Seek support from peers, care specialists, and financial and legal professionals ü Access to important health and financial documents ü Ensure adequate savings to fund personal healthcare needs

At all phases in your journey: BUDGET SET GOALS & UPDATE AS LIFE CHANGES 6 MONTH EMERGENCY FUND PAYOFF YOUR CREDIT CARDS IN FULL EACH MONTHLY AUTO TRANSFER FROM CHECKING TO SAVINGS NEGOTIATE YOUR INTERNET, PHONE AND CABLE BILLS EACH YEAR

At all phases in your journey: PAY INSURANCE PREMIUMS ANNUALLY PAY STUDENT LOAN PAYMENTS BIWEEKLY USE INCREASES IN INCOME TO YOUR ADVANTAGE REVIEW CREDIT REPORT ANNUALLY HAVE A FINANCIAL PLAN AND REVIEW IT ANNUALLY

At all phases in your journey: Avoid withdrawals from your retirement account $10, 000 withdrawal costs $4, 000 in taxes & penalties $10, 000 today will be at least triple the amount in 20 years Start thinking about your financial future today

Your journey is different than everyone else’s. Start where you are and with what you have. It’s not all about money. It is really about affording the life you want.