FINANCIAL PLANNING

Session # 4

Spending Tracker Check Up

• Has everyone still been using their spending tracker notebooks?

What we will need today:

• Your budget

• Your calculations for cutting back from last class

Setting Financial Goals

• When you are setting a financial goal, it is important to set a realistic goal

• A goal that you are likely to achieve, not one that may be difficult for you

Setting Financial Goals

• Make a list of 3 or 4 things you would like to accomplish

• Suggestions:

• Spend $10 less each week

• Pack a lunch instead of eating out

• Save $40 each month

• Pay an extra $20 each month towards my debt

Setting Financial Goals

• Which goal do you feel is most important to you?

• Circle or highlight that goal on your list

Setting Financial Goals

• What resources will you need to help you achieve this goal?

• A savings account

• A spending tracker

• A financial advisor

• Make a list

Setting Financial Goals

• How long will it take you to achieve your goal?

• 6 months

• 1 year

• 2 years

• Set a completion date

Setting Financial Goals

• Look at your calculations for cutting costs from last session

• Which of these costs are you going to cut to help you achieve your goal?

SAVING TIPS

• Set up an emergency fund first

• In case of unexpected expenses or the loss of your job

• You can use your emergency fund instead of your savings so you don’t have to put off achieving your goal

SAVING TIPS

• How much should be in your emergency fund?

• It is recommended that you save between 3 & 6 months worth of your income

• eg. If you make $2,000.00 each month, you should have somewhere between $6,000.00& $12,000 saved in case of an emergency

SAVING TIPS

• Pretend your savings is just another bill

• This will ensure that you pay your savings account every month

SAVING TIPS

• Have your bank automatically transfer money from your chequing account to your savings account

• This way you don’t have to worry about remembering to go to the bank each week or month

TIPS FOR REDUCING DEBT

• Pay down the debt that has the highest interest rate FIRST

• This will save you money in the long run because you will have paid less in interest

TIPS FOR REDUCING DEBT

• Avoid using credit cards & “buy now, pay later” offers

• If you don’t sign up for a credit card you can’t create debt for yourself

• “buy now, pay later” offers tend to have high interest rates

• If you can’t afford the product now, don’t make the purchase

TIPS FOR REDUCING DEBT

• Speak to creditors to ask for lower interest rates

• If you are paying less interest you can pay your debt off faster and save more

TIPS FOR REDUCING DEBT

• Speak to a financial advisor about consolidating your debt

• Consolidating debt occurs when you get one loan to pay off all of your debts

• You can then make 1 payment every month

• Sometimes the interest rate will be lower than your existing interest rates

Making our Goal Official

• Complete the financial goal pledge form

• Have a friend or myself sign as your witness

Milestone # 30

• Create a table to organize & compare

• This is something you should do before making a major purchase or signing up for a service

• Use the computers or hand draw your charts

NEXT CLASS

• Exploring financial resources in the community

• Last session so bring your questions!!