Transcript Six Steps to Wealth -- PowerPoint

Six Ways to Increase Wealth
Laura Connerly, Ph.D.
Assistant Professor
Wealth Recommendations
•Balance income & expenses
•Calculate debt load
•Check credit report
•Know your credit score
•Save for emergencies
•Plan for retirement
Balance Income & Expenses
• Income Statement
• Expense Statement
• Spending Plan
• Fixed
• Variable
• Periodic
www.uaex.edu
Your Spending Plan
Total Income
- Total Expenses
Calculate Debt Load
• List monthly
payments:
•
•
•
•
Car
Student loan
Credit cards
TOTAL
• Credit Management
factsheets:
325
100
75
525
• Divide by monthly
net income:
525÷2500=.21 OR a
21% debt load
• Managing Credit
• Financial Fitness Series:
Trim Your Credit Line
• Credit Reports and
Credit Scores
www.powerpay.org
Check Your Credit Report
Credit Bureaus
• Equifax
• Experian
• TransUnion
Online at:
www.annualcreditreport.com
Know your credit score
• Credit scores must be purchased
• Each credit bureau varies
• Two major types:
• Fair Issac Corporation – FICO Score
• VantageScore
Save for Emergencies
• Take Small Steps
• Work toward 10%
• Start and increase
• Build Emergency Fund
• Critical safety net
• Start with $1,000
• 3 to 6 months of income
Plan for Retirement
Most people don’t save enough. Prepare for
financial stability in later life:
1. Maximize matched contributions to employer
provided plan
2. Maximize allowed contributions to IRA
3. Minimize debt to retire debt free
4. Save and invest
www.extension.org
Six Ways to Increase Wealth
Laura Connerly, Ph.D.
Assistant Professor