TLN

Financial Education
Workshop

Turning Dreams
into Reality

© Copyright 2005 E. Harris and J. Morley

About your materials

¾ Workbook

¾ Notes Handout

¾ Worksheets

¾ Evaluation forms

© Copyright 2005 E. Harris and J. Morley

1
Cash Management

The Foundation of
Sound Planning

© Copyright 2005 E. Harris and J. Morley

Four Steps to
Financial Well-Being

¾ Set Goals. Goals keep you

accountable!
¾ Understand what’s getting in the way.
¾ Understand
U d d where
h you are now.
¾ Make a plan and STICK TO IT!

© Copyright 2005 E. Harris and J. Morley

2
 Making Decisions as a Family
¾ Talk about your goals together.
¾ Have each person share financial
goals.
¾ Compare and discuss goals.
¾ Determine whether the choices
yyou’re makingg as a familyy NOW
N W are
helping you reach your goals.
¾ Require EVERYONE to compromise.
¾ Prioritize goals and agree to a plan.
© Copyright 2005 E. Harris and J. Morley

Four Steps to
Financial Well-Being
¾ Set Goals. Goals keep you
accountable!
¾ Understand what’s getting in the way.
¾ Understand
U d d where
h you are now.
¾ Make a plan and STICK TO IT!

© Copyright 2005 E. Harris and J. Morley

3
 Getting over
the Obstacles
¾ Obstacle
l #1: Habits and Behavior
h
¾ Obstacle #2: Hidden Values and
Impulses
¾ Obstacle #3: Difficulty adjusting to
change
¾ Obstacle #4: Family cooperation
© Copyright 2005 E. Harris and J. Morley

Four Steps to
Financial Well-Being

¾ SetGoals. Goals keep you

accountable!
¾ Understand what’s getting in the way.
¾ Understand where you are now.
¾ Make a plan and STICK TO IT!

© Copyright 2005 E. Harris and J. Morley

4
 Your Cash Flow

¾ List Income Sources.

Sources
¾ List fixed Expenses.
¾ Go to check register, bank & credit card
statements to find variable expenses.
¾ Estimate cash expenditures.
expenditures
¾ Turn all expenses into monthly and
annual values.

© Copyright 2005 E. Harris and J. Morley

Net Worth Statement—What

you Own vs. What you Owe
¾ List Assets.
¾ List Liabilities.
¾ Hints.
¾ Look for ways to improve your
situation.

© Copyright 2005 E. Harris and J. Morley

5
 9 Account
9 Analyze
9 Adjust
j

© Copyright 2005 E. Harris and J. Morley

The Latte Habit

My friend Bulwinkle is a latte

addict. He is 35 years old and
wants to retire at age 60.

¾ Bulwinkle drinks 2 lattes per day

at $2.50
$2 50 each.
each

¾ He spends approximately $100.00

per month.

© Copyright 2005 E. Harris and J. Morley

6
 The $100,000 Latte
$120,000

$100 per month $100,563

8.3% rate of return
$80,000
25 years

$40 000
$40,000

0
5 years 15 years 25 years

© Copyright 2005 E. Harris and J. Morley

Four Steps to
Financial Well-Being
¾ SetGoals. Goals keep you
accountable!
¾ Understand what’s getting in the way.
¾ Understand where you are now.
¾ Make a plan and STICK TO IT!

© Copyright 2005 E. Harris and J. Morley

7
 Take Action—
the S.M.A.R.T. way

¾ Be SPECIFIC—list each new step.

¾ Make each step MEASURABLE (check
progress monthly).
¾ Take ACTION—start immediately!
¾ Track RESULTS—check for real savings
and reward success.
¾ Set TIME LIMITS for achieving goals.

© Copyright 2005 E. Harris and J. Morley

Be Specific

¾ Find spending cuts—

cuts—use the Tips List.
¾ Increase income
income— —part time job, overtime.
¾ Assess habits, values and weak spots.
¾ List the steps you
you’ll
ll use to achieve savings
savings.

© Copyright 2005 E. Harris and J. Morley

8
 Measure

¾ Log your income & expenses

monthly.
¾ Be consistent—
consistent—month after
month, year after year.
D l th
Develop the b
budget
d t HABIT
HABIT.
¾ Stay on track. Adjust if
necessary.

© Copyright 2005 E. Harris and J. Morley

Take Action!

¾ Give yourself deadlines.

deadlines
¾ Act on them.
¾ Don’t procrastinate
procrastinate—
— the sooner you start,
the quicker you’ll
reach your goals!

© Copyright 2005 E. Harris and J. Morley

9
 Focus on Results

¾ Are you really making progress?

¾ Is there any “collateral damage”?

¾ Reward yourself with non-

non-money treats!

© Copyright 2005 E. Harris and J. Morley

Set Time Limits for Change

¾ Give your goals time limits.

¾ Give your specific action
steps time limits.
¾ Connect your goals to your
actions
actions.
¾ Handle short and long term
goals the same.

© Copyright 2005 E. Harris and J. Morley

10
 Four Steps to
Financial Well-Being
¾ SetGoals. Goals keep you accountable!
¾ Understand what’s getting in the way.
¾ Understand where
you are now.
¾ Make a plan and
STICK TO IT!
© Copyright 2005 E. Harris and J. Morley

Thank you!

© Copyright 2005 E. Harris and J. Morley

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