FINANCIAL FITNESS. . . For Everybody

Are YOU financially fit?

• Do you need a financial workout?

• Do you worry about money?• Have you had a loss of income?• Would you like to better manage

your finances?

Make a decision to become more financially fit

• Small changes add up• Regular routine of financial fitness

will provide muscle to…– Reduce debt– Save money– Spend wisely

Do you talk with your family about money?

• Good communication adds to financial fitness

• Discuss needs and wants• Available funds• Funding needs before

wants

Couple communication

• Discuss household finances• Location of

– bank accounts – investments– important papers

• Details of paying bills• Helpful in case of an emergency

What are your dreams?

• Write dreams in the form of goals.– Short term goals– Long term goals– Be specific

• Written goals are more likely to be accomplished• Road map for your financial future

Tracking your expenses

• Write down every expenditure:– Groceries– Clothing– Meals out– Snacks, etc.

• Are there any surprises?

Have you kicked a habit lately?

• Do you smoke? • Eat lunch out every day?• Buy snacks from the vending

machine?• The little extras in your life?

How much does a habit cost?

• Lunch out 5 days a week at $5 a day - $25• Lunch out $5 a day for a month - $100• Lunch out at $5 a day for a year - $1200

Other spending habits

• Excessive spending– Expensive vacations– New cars– Cell phones, beepers,

caller ID– Premium cable TV– Shopping sprees

Spending more than you make

• Credit obligations should be no more than 20% of take-home pay. < 20%

• Credit reduces your future buying power

Credit Trap

• Minimum monthly payments – Pay more than the minimum when

possible– Avoid offers to skip payments

• Sometimes takes years to re-pay

Credit check-up• Check your credit report

– Record of your bill paying history

– Used by lenders to determine credit risk

– Check once a year for accuracy

– If there are errors, contact the Credit Bureaus for corrections

• Avoid credit repair clinics

Credit Reporting Bureaus

• Equifax – www.equifax.com

• Experian – www.experian.com

• TransUnion – www.tuc.com

Shopping habits

• Shop with a list• Avoid impulse buying• Do your homework before

buying• Comparison shop for the

best buy• Shop sales for needed

items

Spending plan

• List your monthly income • List your estimated

expenses• Keep a record of how

much is actually spent • Reallocate resources

Reserve cash

• Reduces the stress of unexpected expenses.• 3 to 6 months of living expenses• Saving money adds to financial fitness, one

day at a time

Pay yourself first

• Is it tough to find money for saving?

• Instead of saving at the end of the month, try saving at the beginning

Save and invest on autopilot

• Get a certain amount direct deposited into a savings or investment account– Convenient– Rewarding

• Good way to become a disciplined saver

What can you do to get your finances in shape?

• Are you already practicing some of these financial fitness exercises?

• Have you discovered other tips to add to your regular fitness routine?

• Start by making a few changes at a time• Stay committed to the program

Financial Fitness is for Every Body!

• Just imagine yourself…– Reducing the cellulite from

your debt load– Increasing the muscle of

your savings and investments

– Getting your financial routine organized & easy to manage

• The results will be rewarding!

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For more information please refer to the Financial Fitness newsletter on your mini-CD