• Your “Financial Planning” booklet

• A pen or pencil

• Develop a positive relationship to money

• Create a budget that works

• Develop a savings plan

• Learn about investing

1. What does money mean to me?

2. How do I feel about budgeting?

3. What are some of my savings goals?

4. What investing success have I had?

• What does money mean to me?

Power Happiness Self-worth Social status Freedom

• An exchange of energy

• A relationship takes understanding, patience, and time

• Begin with small steps

• Money comes in every month—your income

• Money goes out every month—your expenses

• Know where it all goes

• Spend less than you make

• Have an all-cash month

• Collect receipts

• Record everything

• Dry cleaning

• Parking charges

• Vending machines

• Magazines

• Postage

• Movie rentals

• Credit card finance charges

• Consider curbing your impulse shopping

• Try to maintain responsible credit

• Establish good credit

• Short-term savings

• Mid-term savings

• Long-term savings

• Sample needs:

Car, vacation, 6-month emergency fund

• Savings vehicles:

Savings accounts

• Types of investments:

Passbook savings account, money market, CDs

• Easy accessibility

• Sample needs:

New home, boat

• Savings vehicles:

Traditional savings account, investment account

• Types of investments:

Mutual funds

• Sample needs:

Retirement, college education

• Savings vehicles:

Retirement: 401(k), IRACollege: 529, Coverdell ESA

• Types of investments:

Mutual funds

• Retirement: 401(k) IRAs

• College: 529 Plan Coverdell ESA

• The Web site has more info at Retire.53.com

• Investing involves some risks

• Risk can be managed Time horizon Diversification Asset allocation

• The amount of time you have before you need to begin withdrawing money

• Longer time—more risk you can take

• Shorter time—less risk you can take

• Put money into more than one investment

• Mutual funds are automatically diversified to help you manage risk

• Spreading your investment dollars over different types of investments

• Investment types: Stocks Bonds Cash equivalents

• Developing a positive relationship to money

• Creating a budget that works

• Developing a savings plan

• Learning about investing strategies

• Make the commitment to start a budget

• Begin your savings account

• Increase your 401(k) contribution

• Consolidate your retirement accounts