budgeting deep dive

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  • B U D G E T I N G D E E P D I V EW I T H K AT E D O R E

    KATE DORE

    @CashvilleSky

  • MY STORY

  • FROM BURNT OUT AND BROKE TO FRUGAL AND FREE

  • IS YOUR FINANCIAL HOUSE IN ORDER? MINE WASNT.

  • BUDGETING DEEP DIVE

  • K E Y Q U E S T I O N S How much do I earn?

    How much do I spend?

    What is my credit score?

    How much debt

    How does my debt

    do I have?

    compare to my income?

  • YOU NEED TO KNOW

    HOW MUCH IS COMING IN

    VS. HOW MUCH IS GOING OUT

  • NO ONE LIKES

    FACING THE NUMBERS,

    BUT YOU NEED TO KNOW

    EXACTLY WHERE YOU STAND.

  • BUDGET PARTY!

  • BANK STATEMENTS + SPREADSHEETS

  • BANK STATEMENTS + SPREADSHEETS +

    WINE

  • BRUNCH & BUDGET

  • BUDGET DATE NIGHT

  • LOOK CLOSELY AT EXPENSES

  • ARE THERE MONEY LEAKS?

  • MONEY LEAKS YOU MAY NOT HAVE THOUGHT OF

    INSURANCE PREMIUMS

    MONTHLY SUBSCRIPTIONS

    RIDE SHARINGFOOD DELIVERY

    BANK FEESCELL PHONE

    HEATING & COOLING

  • DID YOU KNOW NEARLY EVERY BILL IS NEGOTIABLE?

  • COMPANIES THAT WILL NEGOTIATE YOUR

    BILLS FOR YOU:

    BILLFIXERS BILLCUTTERZ

    BUT THEY DO CHARGE A FEE

  • GOT A PROBLEM AREA?

  • SWITCH TO A 30-DAY

    CASH DIETFOR YOUR

    PROBLEM AREA(S)

  • TIRED OF BUDGETING SPREADSHEETS?

  • PERSONAL CAPITAL

    COST: FREE

  • MINT

    COST: FREE

  • YOU NEED A BUDGET (YNAB)

    COST: $50 PER YEAR

  • POCKETGUARD

    COST: FREE

  • MVELOPES

    COST: FREE - $95 PER YEAR

  • TWO THINGS ARE CRITICAL:

    3-6 MONTH EMERGENCY FUND

    KNOWING YOUR BARE BONES BUDGET

  • WHATS THE RIGHT AMOUNT FOR YOU?

  • Does your employer or union provide a loss of income protection plan like short or long-term

    disability insurance?

    How robust is your medical insurance plan?

    What is your level of fixed expenses and debt? You should still have an emergency fund of at

    least $1,000 if youre dealing with debt.

    Does your family have additional sources of income?

    Do you have access to a home equity line of credit?

  • WHERE TO STASH YOUR EMERGENCY FUND:

    CHECKING SAVINGS MONEY MARKET DEPOSIT CERTIFICATE OF DEPOSIT

  • WHAT IS YOUR BARE BONES BUDGET?

  • WHAT MAKES A CREDIT SCORE?

  • WHAT MAKES A CREDIT SCORE?

    35% - Payment History

    30% - Total Debt & Utilization

    15% - Length of Credit History

    10% - Types of Credit in Use

    10% - New Credit

  • WHAT IS A GOOD CREDIT SCORE?

  • FICO SCORES

  • VANTAGESCORES

  • WHY DO CREDIT SCORES MATTER?

  • BEING APPROVED FOR CREDIT

    Mortgages

    Refinancing Student Loans

    Credit Cards

    Personal Loans

    Car Loans

  • AFFORDABLE INTEREST RATES

    30-year fixed rate mortgage for $240,000

    840 - 850 score:

    3.5% interest - $147,975 total

    680 - 699 score:

    4.375% interest - $191,382

    THATS $43,407 EXTRA IN INTEREST!

  • DO YOU KNOW WHO ELSE CHECKS YOUR CREDIT SCORES?

  • Your written request

    Satisfying a federal court order or subpoena

    Financial institution completing a credit application for a loan

    Utility companies

    Insurance underwriters

  • Government agencies for certain licenses or government benefits

    Landlords

    Potential Investors

    Current creditors for collections efforts

    Child support enforcement

    Prospective employers (only with your written consent)

  • Yup, 47% of employers conduct credit checks!

  • WHERE CAN YOU GET YOUR CREDIT SCORE?

  • ANNUALCREDITREPORT.COM

    Free, once per year Raw credit scores from Experian, TransUnion, Equifax

    http://annualcreditreport.com

  • WHY MONITOR YOUR CREDIT REPORT?

    1 in 4 people have an error in one of their credit reports.

    1 in 20 people have a SERIOUS error in one of their credit reports.

  • WHERE TO MONITOR FOR FREE

    Credit Karma - Experian & TransUnion

    Quizzle - Equinox

    Credit Sesame - TransUnion

    These arent FICO scores, but some banks are starting to offer those for free, as well.

  • TACKLING DEBT

  • WHAT IS YOUR DEBT-TO-INCOME RATIO?

    GROSS MONTHLY INCOME /

    TOTAL DEBT

  • WHY DEBT-TO-INCOME MATTERS

  • 40 - 50% DEBT TO INCOME IS RISKY

    50% OR MORE DEBT-TO-INCOME CAN BE DANGEROUS

  • A STRONG CREDIT SCORE & LOWER DEBT-TO-INCOME RATIO EQUALS MORE OPTIONS

    BALANCE TRANSFER CREDIT CARDS LOW-INTEREST PERSONAL LOANS

  • BUDGETING, YOUR CREDIT SCORE, AND DEBT PAYOFF ARE TOOLS

  • THESE TOOLS MAKE ROOM FOR THE MOST IMPORTANT QUESTION:

    HOW MUCH IS AN HOUR OF YOUR LIFE WORTH?

  • GOT QUESTIONS?

    CashvilleSkyline.com

    @CashvilleSky

    Facebook.com/CashvilleSky

    http://cashvilleskyline.com