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BETTER FINANCIAL HEALTH:ONE STEP AT A TIME

• Create a safety net• Tackle debt• Know where your credit stands• Save for your future• Don’t be afraid of investing• Protect your loved ones

Today’s discussion

Create a safety net

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Emergency fund basics

• How much?− Three to six months’ worth of living expenses

• Where should it go?− In account that can be easily accessed without taxes or

penalties

• When should it be used?− Only for expenses related to unexpected emergency

• Don’t panic – something is better than nothing!

Helpful tips for saving

Get frugal about food $100– Take lunch to work– Scale back on restaurant dinners

Clip coupons, use savings apps $40

Negotiate phone, internet, cable services $30

Lower monthly expenses by $160

Tackle debt

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Importance of a spending plan

Track what you spend

Discover opportunities

to save more

Learn to live

within your means

Prepare for the

unexpected

Big spending decisions

Based on 7% annual rate of return. This example is for illustration purposes only and is not intended to represent the return of any specific investment. Estimates are based on the assumptions noted, do not guarantee or imply a projection of actual results, and do not include the effect of taxes. Wells Fargo cannot guarantee results under any savings or investing program, including a regular investment program, and cannot guarantee that you will meet your retirement savings goal.

$76,123more after 30 years

Pay $20,000 for used car

Pay $30,000 for new car

• Resist impulse buying• Don’t use your card for things

you can’t afford• Stay within your credit limit• Pay bill on time and pay off

balances monthly

Credit card use

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Know where your credit stands

Order a free copy of credit report

Report incorrect or outdated

information

Order your credit report

annualcreditreport.com or 1-877-322-8228• Experian• Equifax• TransUnion

• Review your credit report for accuracy• Report any errors to the credit bureau

Get the help you need

• Ask for help• Contact your creditors• Get credit counseling if needed• National Foundation for Credit Counseling

• 1-800-388-2227 or nfcc.org

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Save for your future

Use your plan to build financial strength

You may contribute: • Up to $18,000 • Additional $6,000 if you are 50 or older

Limit does not include employer contributions

Plan may have lower limits

You may be eligible for Saver’s Credit

This example is for illustration purposes only. All estimates are based on the assumptions noted, are not guaranteed, and are not projections of actual results. This example does not consider the effects of taxes.

$45,911 $111,725 

$245,881 

$137,732 

$335,176 

$737,644 

20 years 30 years 40 years

3% contribution rate

9% contribution rate

Example based on a $30,000 salary with annual pay increases of 2%. Assumes a 7% annual return.

Your contribution rate can make a big difference

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Know your retirement savings goal

Have fun playing Retirement City!

Don’t be afraid of investing

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Basic investing strategies

Asset allocationHow you divide your money among stable value/money market investments, bonds, and stocks

Diversification How you divide your money within each asset class

Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses.

Bonds

How can asset allocation impact returns?Return on $1,000 for 25 years (1991 – 2015)

20% stocks48% bonds32% stable value/money market

60% stocks24% bonds16% stable value/money market

80% stocks12% bond8% stable value/money market

Ultra-Conservative

Portfolio

Conservative Growth Aggressive

100% stable value/money market

Performance is historical and does not represent future results. Index Source: Zephyr Associates, Inc. The graphs represents the performance of certain portfolios rebalanced monthly. These strategies do not represent the performance of any specific investment. Stocks are represented by the S&P 500 Index, an unmanaged index generally representative of the U.S. stock market. Bonds are represented by the Barclays Capital US Aggregate Bond Index, an unmanaged index representative of fixed rate debt issues rated investment grade or higher. Stable value/money market is represented by the Citigroup 3-Month T-Bill Index, an unmanaged index of 3-month Treasury Bills. It is not possible to invest in an index.

$1,016$3,283

$5,964$7,600

Use online information and tools

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Protect your loved ones with estate planning

• Provides for money management and health care decisions during incapacity or illness

• At death, you control who gets what

• You decide who will be in charge (agent, executor, guardian)

• Can reduce estate taxes, if applicable

How a good estate plan can help

• It takes longer for family to get access to assets

• “Defaults” control who gets what

• Court decides who will be in charge

• Tax planning opportunities could be lost

Possible disadvantages of not having one

• Write down your objectives

• Create a list of your assets and insurance

• Have an estate planning attorney draft the appropriate documents

Getting started

• Will

• Revocable living trust (for some)

• Beneficiary designations

• Durable power of attorney for financial and legal matters

• Health care directive and living will

Key documents

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Take charge of your financial health!

Create emergency savings

Create emergency savings

Know where credit stands

Know where credit stands

Take charge

Tackle debtTackle debt

Save for retirement Save for

retirement Protect loved onesProtect loved onesUnderstand investmentsUnderstand investments

Get help with your decisions

Partner with a financial professional, who can:

• Help create an action plan

• Discuss options for reaching your goals

• Help with contingency plans

• Evaluate investment approaches

• Review your goals regularly

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Stay in touch with your plan

• Sign on to wellsfargo.com or through our app

• Call our retirement service representatives

Recordkeeping, trustee, and/or custody services are provided by Wells Fargo Institutional Retirement and Trust, a business unit of Wells Fargo Bank, N.A. This information is for educational purposes only and does not constitute investment, financial, tax, or legal advice. This information and any information provided by employees and representatives of Wells Fargo Bank, N.A. and its affiliates is intended to constitute investment education under U.S. Department of Labor guidance and does not constitute “investment advice” under the Employee Retirement Income Security Act of 1974. Neither Wells Fargo nor any of its affiliates, including employees, and representatives, may provide “investment advice” to any participant or beneficiary regarding the investment of assets in an employer-sponsored retirement plan. Please contact an investment, financial, tax, or legal advisor regarding your specific situation.

©2017 Wells Fargo Bank, N.A. All rights reserved. 2-17

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Managing your money Budgeting & savings strategies

Mark RichWells Fargo, Hands on Banking Manager, Team Member Volunteerism

February 28, 2017

© 2017 Wells Fargo Bank, N.A. All Rights Reserved.

Seminar goals

1. Learn concrete steps you can take to help you develop a financial plan.

2. Discover tools and tips you can use for money management.

3. Set financial goals and make a commitment to implement at least one idea you hear today.

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By failing to prepare, you are preparing to fail.

– Benjamin Franklin

“

”

Take an inventory

How is your overall financial health?

What are your spending habits?

What are your savings habits?

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Determine your net worth

Create a personal balance sheet.

“Assets” are what you own.

“Liabilities” are what you owe.

Your “Net Worth” is your assets minus your liabilities.

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Your personal balance sheet

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How can I increase my net worth?

Increase my assets.

Save more.

Pay down my debt.

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Set financial goals

Build an emergency fund.

Save for a child’s college education.

Save for a home purchase.

_____________________

_____________________

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Your financial goals –what’s important to you?

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Money saving tips

1. Obtain buy-in from family.

2. Focus on the number of dollars you need to save per day.

3. Look at lower-cost alternatives.

4. Shop around for the best interest rate.

5. Pay yourself first.

6. Take advantage of your company’s payroll deductions, if possible.

7. Save bonus income.

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8. Save coupon money.

9. Collect loose change.

10. Review cell phone costs.

11. Save lunch money.

12. Save money from sales.

13. Have a “Buy Nothing” week.

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Ten leading causes of overspending

1. The “latest and greatest” syndrome.

2. Using credit instead of cash.

3. Eating out.

4. Borrowing from the future.

5. Keeping up with the Joneses.

6. Impulse buying.

7. Money “burning a hole in your pocket.”

8. Not knowing how much you have to spend.

9. Rationalizing spending = “I need it because...”

10. Not knowing what you are spending your money on.9

How much money do I have?

Do any of these apply to you?

I don’t understand the cycle, or flow, of my money.

I don’t know how much I have to spend.

I live paycheck to paycheck.

I come up short when the big bills are due.

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What is the purpose of a spending plan?

Spending plans help you to:

Reach your goals.

Stay focused.

Show where you need additional help.

Include family members in money management.

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Creating a spending plan

Spending plans help you to:

Track your spending.

Itemize your income and expenses.

Total and compare the income and expense columns to create your spending plan.

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2

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Creating a spending plan

Track your spending

Keep a spending diary for 1-2 months and record everything you spend as well as how you spend it (cash, check, credit, debit, ATM, etc.)

Maintain all receipts, credit card statements and check registers.

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My Budget Worksheet

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Creating a spending plan

Itemize your income and expenses

List and total your monthly income from all sources.

List and total your monthly expenses and refer to your spending diary to put each expense in the proper category.

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Creating a spending plan

Total and compare your income and expenses to create your spending plan

If you have money left over, you have a positive cash flow.

If you spend more than your income, your cash flow is negative.

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Spending plan tips

Keep it simple—don’t get too detailed with your spending plan

Set aside money each pay period to cover large expenses that are not monthly (insurance bills, car repairs, holiday gifts, etc.)

Before you make a purchase ask yourself:– Do I really need it?

– What would happen if I didn’t buy it right now?

– Can I meet this need less expensively?

Limit your installment debts (car loans, credit card bills, other loans) to 10-20% of your monthly spending plan

Review your bank and credit card statements to monitor where your money is going

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Monthly spending plan review

Review your spending plan monthly and ask yourself:

Am I over or under my spending target?

Are my variable expenses in line?

What are my “budget busters?”

Are any expenses out of control?

Will I make my planned surplus by year’s end?

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In summaryGetting ahead financially requires a long-term effort

Consider today:– Where do I stand right now?

– Where do I want to be one year from today?

– Where do I want to be five years from today?

Reevaluate one year from today:– Calculate your net worth again and track it from year to year.

– Create a new balance sheet.

– Set goals and develop a new spending plan for the next twelve months.

Remember, if your net worth is growing, you are getting ahead!

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Moving forward

What did you learn today?

What will you take away from this seminar and put to use in your financial life? (Don’t forget to write it down)

Questions?

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Thank you21