YOUR MONEY & YOU

Financial Literacy Basics

Outline

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1. How to Get Out of Debt

2. Budgeting

3. 3 Things to do With Your Money

4. How to Monitor Your Spending

How to Get Out of Debt

© 2012 The Mullings Group. http://TheMullingsGroup.com

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A debt is any money you owe

A bill is not a debt - unless it is past due

The borrower is slave to the lender

75% of the 400 richest people in America

say that the #1 way to get wealthy is to get out of debt

You need to stop getting deeper into debt

now!

How to Get Out of Debt

© 2012 The Mullings Group. http://TheMullingsGroup.com

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Credit Collectors…

Know your rights…Google: “1977 Federal

Fair Debt Collection Practices Act”

Get your free credit report from all three reporting agencies

e.g. annualcreditreport.com

Dispute all items that are not correct

How to Get Out of Debt

© 2012 The Mullings Group. http://TheMullingsGroup.com

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1. Create a budget

2. Track your spending

3. Get current with all your creditors

4. Pay the minimum on all debts

5. Save $1000 for emergencies

6. Payoff debt - No new debt

Budgeting

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Budget: A plan for spending or saving

money received

Expenses: Money you spend to buy or do

something

Income: Money you earn or receive

Budgeting

© 2012 The Mullings Group. http://TheMullingsGroup.com

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Money will follow the path of least

resistance

A budget tells your money where to go

Unbudgeted money gets squandered

“Where did all the money go…?”

Budgeting

© 2012 The Mullings Group. http://TheMullingsGroup.com

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The 4 sections of a budget…

1. Give

2. Save

3. Spend

4. Income

3 Things to do With Your Money

© 2012 The Mullings Group. http://TheMullingsGroup.com

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Money is something generally accepted as a

medium of exchange or a means of

payment.

You can on only do 3 things with money…

1. Give it away

2. Save it for later (including investing)

3. Spend it

Give

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It is better to give than to receive

Charity

Church

Someone in need

The Law of the Harvest

Save

© 2012 The Mullings Group. http://TheMullingsGroup.com

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$1000 emergency fund

3-6 months of living expenses

College

Retirement

Sinking fund*

Sinking Fund12

Sinking fund – money set aside for

infrequent purchases e.g. car,

electronic device, etc.

Stay out of debt by paying cash for your

purchases.

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Spend

© 2012 The Mullings Group. http://TheMullingsGroup.com

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Household

Transportation

Personal

Education

Blow – money you spend on “whatever”

Debt – hopefully none

How to Monitor Your Spending

© 2012 The Mullings Group. http://TheMullingsGroup.com

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Use the envelope system

Sheet 5 in your handout

http://MyTotalMoneyMakeover.com

http://Mint.com

Quicken

Free Financial Information…

© 2012 The Mullings Group. http://TheMullingsGroup.com

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Dave Ramsey@ http://DaveRamsey.com

All handout forms are from MyTotalMoneyMakeover.com

Crown @ http://crown.org

Invite Us to Teach for You

© 2012 Keno R. Mullings. http://TheMullingsGroup.com

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Call us at 617-299-6871 or email us at

workshops@themullingsgroup.com to have us

come teach a workshop for you.

Questions?

© 2012 The Mullings Group. http://TheMullingsGroup.com

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Connect: http://www.linkedin.com/in/kmullings

Follow: http://twitter.com/KenoMullings

Consult: http://TheMullingsGroup.com

Learn: http://TheMullingsUniversity.org

Discover: http://StrategicLifePlanSystem.com

Call: (617) 299-6871