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1. To identify the building blocks of energy.

2. To build a personal finance budget.3. To analyze a budget and make

decisions based on outcomes.4. To construct a bank reconciliation

statement.5. To incorporate project management

techniques (e.g., Gantt & PERT Charts) in personal management of tasks.

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• Has one basic definition that can be applied in a variety of contexts

• Can be defined as: the act, manner or practice of managing; handling, supervision and control

• Is key to handling energy, controlling money and supervising tasks

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• Acts as a drive to keep focused, motivated and on task

• Requires constant supervision, control, modification and adaptation. In other words energy requires management.

• Is a development process and requires building blocks such as:– sleep– visualization– eating right– attitude

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• Keeps you motivated, focused and on track of managing personal finances, household matters, tasks and more

• Is the key to effectively managing, controlling and monitoring all aspects of life both personal and professional

• Begins with developing tools to improve your sleep, visualization, health and attitude

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• Is the first step to building healthy energy• Varies among different individuals; different

people require different amounts of sleep• Repairs muscle• Regulates growth and appetite• Consolidates memory, meaning that

everything you learned that day will be processed through short-term and long-term memory banks

• Occurs through two cycles involving several stages

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• Stands for “Non-Rapid Eye Movement”

• Represents 75 percent of the sleep cycle during the night

• Consists of four stages

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Stage 1

Between being awake and falling

asleep

Light Sleep

Stage 2

Onset of sleep

Becoming disengaged from

surroundings

Breathing and hearing rate are

regular

Body temperature drops

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Stage 4

Blood pressure drops

Muscles relax

Tissue growth and repair occurs

Hormones are release

Stage 3

Deepest and most restorative sleep

Breathing becomes slower

Blood supply to muscles increase

Energy is restored

• Stands for “Rapid-Eye Movement”

• Represents 25 percent of the sleep cycle during the night

• Occurs approximately 90 minutes after falling asleep

• Recurs every 90 minutes

• Provides energy to brain and body

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• Supports daytime performance

• Brain is active and dreams occur

• Eyes dart back and forth

• Body becomes immobile and relaxed, as muscles are turned off

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• Maintain a regular bed and wake time schedule including weekends

• Establish a regular, relaxing bedtime routine such as reading, hot bath, listening to smooth music

• Create a sleep-conducive environment that is dark, quiet and comfortable

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• Do not workout two to three hours before you intend to sleep

• Do not eat two to three hours before you intend to sleep

• Avoid nicotine and alcohol

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• Should be done in the morning when you wake up, for instance– in the shower, think of all the

things you need to do– take a minute or too in the

morning to sit alone and visualize all of the things that need to be done that day

• Needs to be relaxing and is a form of meditation

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• Provides a set of goals for the day• Acts as a roadmap• Provides comfort and a sense of

control

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• Is one of the most difficult things to do• Requires planning a balanced diet• Should consist of healthy energy snacks • Does not include “false energy” foods and

nutritional items such as caffeine• Is best accompanied by exercise, in fact

– science has proven that exercise enables people to have higher amounts of energy and sense of control in life than those who do not exercise

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• Increases energy levels

• Improves personal health

• Assists with controlling daily stressors in an efficient and effective manner

• Strengthens your existing relationships and helps you develop new relationships

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• Starts with communication– Composing a t-chart. On the left side write

down all the negative thoughts that came up during the day. On the right side rewrite the statements into positive thoughts and proactive statements.

– Be honest and communicate feelings in a positive way. Bottling up anger, frustration and negative energy will lead to a counterproductive way of life.

– Socialize, reconnect with old friends, make new friends and build a support network.  

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• Check your baggage at the door– in other words, learn to let go of

emotional baggage– focus on the positive– be proactive 

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Proactive - controlling a situation by causing something to happen rather than waiting to respond to it after it happens

• Begins with budgeting your finances– Calculate income sources (fixed and variable )

• salary • savings account• benefits (Social Security, alimony)

– Calculate expenses (fixed and variable)• rent• utilities• insurance• food

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• Assist in planning your financial situation throughout the year

• Identify shortages before they happen

• Act as a control mechanism in regards to the way you spend money

• Allows you to see the larger picture and assist in reorganizing finances to reduce debt or increase savings

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INCOMEWages 0.00 Interest/dividends 0.00 Income totals 0.00 EXPENSESHomeMortgage/rent 0.00 Cellular telephone 0.00 Home totals 0.00    Daily livingGroceries 0.00 Dining out 0.00 Daily living totals 0.00    TransportationGas/fuel 0.00 Insurance 0.00 Transportation totals 0.00

   EntertainmentCable TV 0.00 Movies 0.00 Entertainment totals 0.00    PersonalClothing 0.00 Salon/barber 0.00 Personal totals 0.00    Financial obligationsLong-term savings 0.00 Credit card payments 0.00 Financial obligation totals 0.00

• My expenses exceed my income?– Cut down– Do you need to eat out so much? – Did you call nine different insurance companies

for the best quote? – Increase your income sources

• invest in stacked certificates of deposit  • donate plasma

– Consolidate your debt• consumer loan• home equity loan

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• My income exceeds my expenses

– Good for you!

– Research investment and savings options

• certificates of deposit

• 401k/IRA Plans

• mutual funds

• stock market24

• Has made managing and controlling money more difficult

• Increases the need to closely monitor and balance checking accounts

• Places greater emphasis on reconciling bank statements

• Creates a greater mess, for instance with checks, carbon copies are kept in one place—the check book; with debit cards receipts are easily lost and kept in a variety of places

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• A schedule that explains the differences between the bank statement and the company’s records

• Derives a corrected balance that brings the bank statement and the checking account into equilibrium

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• Consider the following facts:– Bank statement balance on August 31 for

Alexander Smith is $3,300– Checking account indicates a balance of

$3,418– A deposit of $500 was made August 30 that

did not appear on the statement– September rent check ($445) was written

August 28th and has not yet cleared– The bank charged a $15 service fee– His friend who was paying him back for a

debit, wrote a check for $60 that bounced – The account earned $12 in interest

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 Alexander SmithAugust 31, 2008

 Balance per Bank Statement     $3,300 Add: Deposits in transit   $500 Subtract: Outstanding checks   ($445)

Corrected Balance     $3,355  Balance per Checkbook     $3,418 Add: Interest earned   $12

SubtractReturned checks (NSF)   ($60)

 Bank service charges   ($15)

Correct Balance   $3,355

• Debtors  are given a borrowing limit that may be increased or decreased by the creditor  – credit cards– department cards (Express, Discount

Tire, Best Buy, Macy’s)• It is estimated that 36 percent of consumer

debt is on open-ended credit

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 Debtor: An individual or business that seeks to borrow credit (cash) from a financial institution. Creditor: Institution who lends an individual or business entity cash to purchase goods.

• Debtors are given a specified amount of credit (cash) that can be used to purchase specific consumer goods and intangible goods– Car loan (consumer good)– House (consumer good)– Franchise startup costs (intangible good)– Debt consolidation  (intangible good)

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 Debt Consolidation: Taking debt from various sources and composing it into one debt to obtain a lower interest rate or lower payment.

• I am in debt how do I get out?– Pay more than the minimum payment

• Rule of thumb: Minimum Payment + Interest Charged + Additional 2 percent of your balance = Monthly Payment 

– Shop for new credit cards• call your credit card company and ask for a

interest rate reduction– compare interest rates, transfer balances

 

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Paying Minimum Payment Get out of Debt Fast!

Card Balance

Minmium Payment

(-)

Finance Charge

(+)

Remaining Balance

Minmium Payment

(-)

Finance Charges

(-)

Additional 2% of

Balance (-)

Remaining Balance

2000 40 27 1987 40 27 40 189339 26 1974 39 26 39 178939 25 1960 39 25 39 168639 24 1945 39 24 39 1584

You have only paid 2.75% of your balance in four months.At this rate if could take you 30 years to pay off this card! You have paid off 20.80% of your balance in four months!At this rate it could take you 5 years or less to pay off the card!

• I am still in debt, how do I get out?– tap into your savings

• why earn 1-2 percent on interest when you are paying 9-30 percent interest to the credit card industry

– debt consolidation• develop a relationship with your bank• secure a loan that will pay off all of your debt

at a much lower rate– refinance

• could cost you more in taxes• consult a financial planning professional about

refinancing options and the tradeoffs

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• Means having control of your bank account,– bank reconciliation assists in maintaining

control, monitoring and identifying errors– with the advent of debit cards, develop a

control mechanism to keep track of all purchases made with a debit card. This is especially important if more than one person (e.g., husband or wife) is using a debit card of their own that withdrawals from a joint account

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• Emphasizes excellent sound practices in using credit cards– in other words purchase what you

absolutely need and can pay off toward the end of the month

– repaying more than the minimum payment

– repaying on time• Needs to be tightly controlled, because it

can have benefits and consequences

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• Can improve your credit score– demonstrates credit responsibility– creates a successful history of

repayment– establishes credit relationships

• In excess is accompanied with social and economic consequences

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• Increases costs for other consumers (social consequence)

– if you have too much debt and cannot pay, your neighbor has to foot the bill by paying higher costs

• Increases tension within the household (social consequence)

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• Causes problems for the Federal Reserve Board –inflation, interest rate and monetary

issues• Is expressed in a form of monetary

denomination• Increases the “monetary supply”

however the economy is not increasing resulting in an economic imbalance 38

• Requires holding all household members responsible, – develop a chore rotation wheel – provide incentives (e.g., allowances,

extra television time) – include all members of the household

when developing the weekly chores to be done

• Involves motivation of team members, whether family, class mates or coworkers 39

• Can be easily handled through a variety of tools:–project management software–rotation wheels–timelines–Gantt charts–PERT charts

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• Provides a graphical representation of the duration of tasks against the progression of time

• Allows for assessment of how long a project should take

• Lays out the order in which tasks need to be carried out

• Develops a planning and scheduling model, in addition to a process for monitoring long term projects

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• Stands for Program Evaluation and Review Technique

• Developed from the Critical Path Model (1957)

• Organizes tasks sequentially,

– in other words, tasks that must be completed before moving on to another task to achieve completion of the final project

• Specifies tasks that can be done sequentially (e.g., multitasking)

• Identifies milestones

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• Energy, money and tasks

– are extremely important to leading a productive life

– relieves stress and provides a sense of control

– enables persons and households to be as efficient as possible with their time

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1. All of the following are building blocks for energy EXCEPT

a. visualizationb. sleepc. screaming d. eating healthy

2. For a good nights rest a person should avoid ___________ and __________ two to three hours before sleep.

a. eating; readingb. eating; showeringc. exercising; studyingd. eating; exercising

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3. Discuss the consequences and benefits of maintaining money, more specifically what are the consequences and benefits of managing credit cards and checking accounts?

4. Name two graphical representations of managing tasks.

5. The following statement is incomplete. Circle the correct answer that would make this question TRUE.  “Debit cards have made managing money more (easier/difficult).”

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6. The purpose of reconciling bank statements is to:

a. find the equilibrium balance between checking account and bank statement

b. locate mistakes

c. control personal finances

d. all of the above

7. Identify your own sources of income and expenses and indicate whether they are fixed or variable.

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8. Developing a positive attitude

a. decreases energy levels

b. weakens personal health

c. complicates relationships

d. all of the above

e. none of the above: If e, correct the phrase to make the statement accurate.

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9. & 10. Given the following facts, construct a bank reconciliation statement.  

– Alexander Smith receives his bank statement on October 31 and the balance is $5,500

– Check book indicates a balance of $5,760– Deposit of $500 was mailed on October 29 that

did not appear on the statement– A check of $300 was written on October 38 that

has not yet cleared– A check of $50 was returned for insufficient

funds– The bank charged $35 service fees– Alexander earned $15 interest on the account

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• Ammons, David N. 2002. Tools for Decision Making: A Practical Guide for Local Government. Washington, DC CQ Press

• Developing a Positive Attitude• http://www.recoverymedicine.com/developin

g_a_positive_attitude.htm 

• Gantt and PERT Chart Examples• http://www.rff.com/gantt1.htm• http://www.knowledgerush.com/kr/encyclope

dia/Gantt_chart 

• Intermediate Accounting, 12th Ed. Kieso, Weygandt and Warfield, Wiley Publishers, 52

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