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 325• Student loan 100• Credit cards 75• TOTAL 525

• Divide by monthly net income:525÷2500=.21 OR a

21% debt load

• Credit Management factsheets:• Managing Credit• Financial Fitness Series:

Trim Your Credit Line• Credit Reports and

Credit Scores

www.powerpay.org

Check Your Credit Report

• Equifax• Experian• TransUnion

Credit Bureaus

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 plan2. Maximize allowed contributions to IRA3. Minimize debt to retire debt free4. Save and invest

www.extension.org

Six Ways to Increase Wealth

Laura Connerly, Ph.D.Assistant Professor