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The Four Things you Need to do to Reach your Financial Goals
Golden West College
November 26, 2016
Who here lives paycheck to paycheck?
You are not alone.
I'm going to show you today how to change that.
According to pbpcounclerconection.com, thirty-five percent of Americans retire with only ten thousand dollars in the bank.
Does this sound like a position you want to see yourself in the next five years?
1. Or shall I say the next 40 years?
2. I want each and every one of you to think about that for a minute.
3. Let it sink it.
4. How are you going to survive?
Well I am here to tell you today you don't have to live that way.
I am going to explain to you four easy steps to reach your financial goals.
I will teach you today how to review and reduce your debt, save for your future, and create a spending plan.
Let's first discuss why we need to reach your goals financially.
Ok, so this isn't the first time you have heard someone talk about the importance of goals, and its definitely not going to be the last.
But clichés aside, understanding the importance of goal setting and knowing how to set goals for yourself is crucial to accomplishing great things in your life.
Setting and reaching financial goals allows you to have more financial freedom.
Paying off your debt allows you to spend in areas of travel and vacation.
According to the New York Times, February 18, 2010 there are a 96 % of people showed increase levels of happiness in their life when taking at least one vacation a year.
Saving for retirement is a great way ensure you stability for yourself when you're not working anymore.
One third of Americans do not save at all for their retirement having the family to have the burden of taking care of them.
Sixty percent of Americans have no idea on how much money they will need for retirement.
Now you know why not reaching your financial goals are a problem let me give you the solution.
The first step in your reaching your goals is reviewing and your debt.
According to smartaboutmoney.org many financial advisors suggest that your total consumer debt should be less than 20 percent of your net income.
2. Consumer debt includes credit card payments, car loans, student loans, and any other debt that you need to repay each monthly, and does not include money spent on mortgage, rent, utilities and taxes.
Using a monthly calculator allows you to assess your debts. (power point)
4. My yearly net income after taxes and deductions is $______________. My monthly net income is $______________.( Yearly income divided by 12.) According to the 20% guideline, the amount of consumer debt per month that I should not exceed is $____________________. (monthly income times .20)
The second step you need to take is create a plan to reduce debt.
Create a get-out-of-debt plan. Use this calculator to get an overview of how long it might take you to pay off your debt.
Cut expenses. Try to indentify a few things you could stop buying or buy less often.
Prioritize debts. Pay off the highest interest rates first and move funds to the next to pay when paid off.
Shift higher-interest loans to a single lower-interest loan.
Stop running new charges.
Saving money isn't easy but it is essential well-being and securing and saving for your future which rolls us to our third step.
Every time you receive a paycheck, save a certain percentage of your income before spending money on anything else.
2. When you put money into a savings account or investment vehicle such as a IRA the amount you originally save is called the principal. The principal amount earns you interest, which then added to the original principal. This amount then earns interest in a process called compounding.
3. You should think of money you save put into three categories, money for an emergency fund, money for short-term purchases, and money for long term goals.
Money for emergency or short term goals should kept in a savings account or money market account.
5. Consider opening a certificate of Deposit or CD which can gain you more interest than a saving. This requires you to leave money there for a certain period of time
Creating a Spending Plan is the Final step in reaching your financial goals.
Putting your financial goals in writing can make them more concrete and achievable.
Decide how much you are going to spend on food, clothing, transportation, and personal.
A spending plan is not supposed to be a strict budget, instead a guide that will help you take control of your financial and, ultimately, reach your goals.
Now that you know how to reach your financial goal, let's move to visualization.
Now I would like you to imagine two different scenarios.
Imagine if you created yourself 20,000 in debt for yourself.
How would that make you feel?
How would that affect you family, your life.
Now i want you to imagine your goal. Being debt free.
Imagine not having to worry about bills.
Imagine yourself not stressed about credit cards
What would you do if you were debt free? It feels great doesn't it. Now it could be something as easy as having a good night sleep.
Now I want you to picture yourself 65 newly retired and with enough money to take care of yourself for the rest of your life.
What would that mean to you?
This sense of security is what everyone works there entire life for.
Now you know what this is going to look like, its time for action!
So now it's your time!
It's your time to start your financial freedom.
Here is exactly what you're going to do.
You're going to gain your financial security by following my four easy steps
Review your debt.
Reduce your debt
Save for your future.
Create a Spending Plan
Your then going to take your financial independence so you don't have to work and everything is covered
And finally you're going to gain your financial freedom so everything you think of is covered.
Now I want everyone to stand up and repeat after me!
I am going to gain my financial security!
I'm going to take my financial Independence!
I'm going my financial freedom!
Now I want you to remember it takes patience, planning, and time to pay off your debt.
It also takes some imagination and creativity.
It can tedious process and easy and tempted to just give up and live with debt.
3.But remember your dreams, goals and future budget and you'll be inspired to stay on track and reach your financial goals and freedom.
Financial Goals 2u to assess your debts. (power point)
5. Consider opening a