Presented by Jeff Witherspoon Consumer Credit Counseling...
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Presented by Jeff Witherspoon Consumer Credit Counseling Service, Inc.
Transcript of Presented by Jeff Witherspoon Consumer Credit Counseling...
Presented by Jeff Witherspoon
Consumer Credit Counseling Service, Inc.
Who we are…
Non Profit Agency – Community Based
Serving Kansas Since 1985 (29 Years)
Provide Individual Counseling Sessions About Credit, Budgeting and Debt Reduction Strategies.
Offer Debt Management Plans
Teach Financial Seminars Throughout the State Including Schools
Regulated by the State of Kansas
Member of the Better Business Bureau A+ Rating
Funded Mostly by Grants Including the United Way and the OSBC
Scary Statistics
• The US had had over 2.3 million bankruptcies and 1.7 million home foreclosures in the last 2 years.
• US unemployment is at 6.7 %, (KS is at 4.8%) with 20% more people are reporting being underemployed.
• We have more payday loan locations than McDonalds, Burger Kings and Wendy's combined
• The average college student graduates with $28,000 in debt
• And 1 in 3 move back home after graduation
• The average social security check is about $1,230 per month
• The US national debt is over $17.5 trillion dollars. Your share is $55,000
Even scarier statistics
Real wages have been stagnant while inflation has been running about 2% over the last 5 years.
The unfunded government liabilities are now over $125 trillion dollars!! This is over 14 trillion dollars more than the assets of everyone in the US and our companies.
47 million people in the US are living in poverty (1 in 7)
18 million Americans are out of work (estimated)
Why are so many people struggling?
Money Saving Tips
How to Keep More of Your Money at the Grocery Store
How to Save More of Your Money at the Grocery Store
Try to buy only items on sale and with a coupon
Do not take the kids to the store with you
Buy store brands if name brands aren’t cheaper
Shop from a list and stick to it!!
Stock up on non-perishables when you get a good price
Always compare items per pound, per ounce or by unit
Shop at Aldi’s
Have a “cheap night” dinner once a week- includes leftovers.
Take a calculator to the store
How to Keep More of Your Money on Your Car
How to Keep More of Your Money on your Car
• SLOW DOWN!! Aggressive driving uses 30% more gas
• Use Consumer Reports before you buy your next car. Look at overall costs of a vehicle, not just price
• Properly inflate your tires
• Maintain your vehicle according to the schedule in your owners manual and use coupons
• Anticipate stoplights and coast to a stop
• Try to keep your vehicle for at least 10 years
• Have your children ride the bus instead of driving to school if it is available.
How to Keep More of Your Money on Car Insurance
How to Keep More of Your Money on Car Insurance
• Raise your deductible to at least $500. $1,000 is better
• Check prices on combined policies, auto and home.
• Compare rates with at least 5 companies
• Make sure your credit score is as high as possible
• Ask for all discounts available from your insurer
• Keep your teenagers from driving as long as possible
• If your car is paid for and is worth under $4,000, drop comprehensive and collision coverage
• Try to drive less, rates are based on mileage (13,000/yr)
• Paying in advance will sometimes get you a discount
How to Keep More of Your Money on Cell Phones
How to Keep More of Your Money on Telephones
• Consider using a no-contract plan such as Virgin Wireless, GO Phone, Tracfone, Net 10 or I-wireless
• Text as much as possible, it is cheaper than calling
• For an inexpensive kid’s plan, consider using Kajeet
• For home telephone consider a Voice Over IP system such as Magic Jack , Vonage or Ooma
• If you have high speed internet -consider Skype,Google Voice
• Go without a data plan if possible-specially kids
• Bundling services with the same company is usually cheaper. Family plans are now very popular
Keeping More of Your Money on Utilities
Keeping More of Your Money on Utilities
• Buy a programmable thermostat
• Turn down your water heater to 110 degrees (medium)
• Wash your laundry in cold water and air dry towels / jeans
• Buy a low flow showerhead and toilet to save water
• Use a surge protector to shut off electronics at night
• Change your furnace filters monthly
• Go to Westar.com for great tips
• Install an attic fan.
• Consider a heat pump
The “ Hidden Costs” of Life(The most important expenses you forget)
These are Expected expenses that occur at least once a year, not monthly, that people tend to forget about.
Examples:
• Car tags and taxes
• Certain types of insurances
• Anniversaries, birthdays, mother’s and father’s day
• And the big one- CHRISTMAS
• Back to school expenses
• Vacations and travel
• Vet bills
So how do we plan for these “hidden costs”?
First you need to know how much you need to save per month:
Hidden Cost: Yearly Amount
Car tags and taxes $ 350
School Costs $ 680
Vacation $ 1,170
Birthdays/Other $ 400
Christmas $ 1,300
Total $3,600 Big Scary Number
Divide by 12 months = $300/per month
Two Largest Controllable Expenses
Example:
Net
Income
$2,500/
Month
From
Gross of
$3,00018
20%
30%
CAR
HOUSE
EVERY-
THING
ELSE
$500
$750$1,250
Jeff’s Top 10 list
• Develop a budget you can live with-include spouse and children
• Establish an emergency fund of at least $5,000
• Start your retirement plan and make sure you are funding it properly. Average is only $89,000
• Only borrow money when necessary and stay within guidelines.
• Start a savings account for the hidden costs of life
• Learn to say NO. To yourself, children and spouse
• Be healthy-the fastest rising cost you have.
• Get out of debt ASAP and stay out.
• Become more financially literate-keep setting goals.
• Enjoy life, it goes in a hurry.!!!!
Contact
• Wichita:
105 S Broadway, Ste 900
Wichita, KS 67202
Ph: (316)265-2000
Fax: (316)265-8507E-mail: [email protected]
Salina:
1201 W. Walnut
PO Box 843
Salina, KS 67402
Ph: (785)827-6731
Fax: (785)827-8280E-mail: [email protected]
Website: www.kscccs.org
