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Achieving Your Financial Goals

• Identify financial goals
• Develop a budget
• Establish a savings plan
• Achieve your financial goals

Identify Financial Goals

• Take a vacation
• Retire comfortably
• Buy a house
• Buy a car
• Pay off student loans

First Step to Financial Goals

• Invest in yourself
  • Feature: Improved education/better job
  • Benefit: More income/ enjoyable job

EDWISE can help!

At EDWISE you can find helpful tools pertaining to:

• Budget
• Loan calculator
• Loan repayment chart
• Real life expenses

Develop a Budget

Perception vs. Reality

Average Expenses Source: Consumer Expenditure Survey, 1998-99, Bureau of Labor Statistics Average Salary Source; JobTrack.com

Realistic Budgeting

• Where money goes
  • Track each expense
  • Visit www.edwise.org
• Write out a budget
  • Stick to it
  • Adopt a thrifty lifestyle

College Budget

• Education costs
  • Tuition and fees
  • Books and supplies
  • Travel/airfare
  • Computer and software

Post-College Budget

• Don’t forget to include
  • Commute expenses
  • Work clothes and dry cleaning
  • Health insurance & taxes
  • Student loans
  • Savings

Don´t Cramp Your Style

• Use grocery list
• Don’t shop when hungry
• Clip coupons and buy bulk foods
• Combine errands
• Bring lunch to work a few times a week
• Leave credit cards at home

Estimated monthly savings: $50

Might Cramp Your Style

• Shop at consignment/thrift stores
• Use economy car or public transportation
• Eat only one meal out each week
• Cancel cable TV or cell phone service
• Rent a video vs. going to the movies
• Lower winter thermostat - raise in summer

Estimated monthly savings: $250

Will Cramp Your Style

• Eat out only once a month
• Use public transportation often
• Cancel cable TV, cell phone, & Internet
• Visit the library vs. bookstore
• Share living costs with a roommate or two
• Read books on ways to be thrifty

Estimated monthly savings: $500

Establish a Savings Plan

• Today’s habits pay off tomorrow
  • Start saving today
  • Sign up for employer’s retirement plan
• Include savings in budget

Rule of 72

Power of Compound Interest

Power of Compound Interest

Savings growth calculated at 6% interest.

Savings Growth

• $50 a month
  • $8,235 in 10 years
• $250 a month
  • $41,175 in 10 years
• $500 a month
  • $82,349 in 10 years

Savings growth calculated at 6% interest.

Achieve Your Financial Goals

Savings & Choices

• $8,235 buys a nice vacation
• $41,175 buys a car
• $82,349 is a
  • Down payment on a home
  • Starting a retirement
• Saving also helps pay off your student loans

Pay Down Student Loans

• $15,000 student loan
• 10-year term
• 8.25% interest rate
• Monthly payment is $184
• Total interest paid is $7,077

Pay Down Student Loans

• An extra $250 a month
  • 6 years faster­saves $4,892 in interest
• An extra $500 a month
• An extra $50 a month
  • 3 years faster­saves $2,231 in interest
  • 8 years faster­saves $5,762 in interest

How to Succeed

• Identify financial goals
• Track expenses and list your debts
• Create a financial plan
• Save in ways that fit your lifestyle
• Start a savings plan­and stick to it!
• Pay off debt