Resource Choices
By Tayla Hamilton
7 Baby steps you should know:
Did you know
China has a 30% savings rate while Canada
has a 4.2% savings rate?
Saving money is an exercise of emotion which also builds your character.
- Have a $1000 in a emergency fund
- Remove your debt (get rid of the debt snowball)
- Have 3 to 6 months in savings
- Invest 15% of your income into retirement
- Have the ability to fund yourself for college
- Pay off your house early
- Build wealth and distribute
Three reasons why we save
money
1. Emergency Funds
2. Purchases
3. Wealth building
Emergency funds should never be touched for anything else but emergencies
(they should be your first priority)
The pinnacle point represents a structure that can either go up or down.
As you go up the mountain to it's pinnacle point this represents your highest point of wealth
As you go down to the bottom of the mountain it represents you at your poorest state
¡Tip!
Never invest using borrowed money because you will always have to pay it back
What is a mutual fund?
A mutual fund is basically when a group of people all put money into something together.
Growth stock
(25%)
Growth and
income (25%)
Agressive growth (25%)
International
(25%)
(also called Mid Cap or Equity fund)
(also called Large Cap or Blue Chip fund)
(also called a small cap fund)
(also called overseas or foreign fund)
Mutual funds should always be life long investments that should
always be used in 4 kinds of ways.
Only 40% Canadians have an idea about how much money they need to retire.
Do not rely on the government to fund your retirement, do it yourself!
Roth IRA's and 401k's are a great way of
saving your retirement money because both protect your investment.
What is social security?
Social security is apart of any government system which provides benefits to the retired, unemployed, and the disabled.
- Social Security was set up to pay retired workers 65 and above a continued income
- Everyone is required to pay social security tax, you cannot get out of paying it
"When people collect social security benefits
they aren't getting them back. Their money
has already been transferred to and spent by previous retirees."
IF YOU TELL A LIE AND SPREAD A MYTH LOUD ENOUGH, LONG ENOUGH, AND OFTEN ENOUGH, EVENTUALLY IT BECOMES ACCEPTED AS THE TRUTH.
Fun fact:
The credit card was created by a man called Frank McNamara.
Debt is not a way of life until you make it.
Debt has been marketed to us with so much intensity and sophistication, that to even imagine living without debt requires a completed paradigm shift. Debt is really bad especially when you feel you can't pay it off. Steps to make to remove your debt is to first get rid of your credit card and switch to a debit card!
¡Tip!
Don't co-sign loans to anyone. This would mean that whatever money you receive/give you will always have to repay.
When you spend with a credit card you spend 12-18% more than just using cash.
hover over the lightbulb!
Did you know that there are 3,000-4,000 advertisements a day?
Every hour of television you watch , you average spending $200 a year!
The After effects of watching too much TV
- Can cause more of an addiction
- Leads to over eating
- Your mind deteriorates
- You have loads of products from the ads you've just watched
- You try to binge watch the episodes you missed
Color is studied in packaging to follow your eye movement.
Color is studied in packaging to follow your eye movement.
You will never get ahead until you develop that power over purchase
👀
Opportunity cost is the true cost of something in terms of what you have to give up to get it
Did you know..?
Money is active, it has a current to it. That's why they call it currency.
When you first make a budget, you are going to have a little trial and error. Give yourself some time to fall down a couple of times and learn the process.
Everyone should start learning to run a checking account by at least age 15.
It is best to use budgeting envelopes for each category you overspend in, such as food.
The money you spend should always equal
the money you earn. This is called a zero-base budget
A few of the components of a healthy financial plan:
1. A written cash flow plan
2. A will or an estate plan
3. A debt reduction plan
4. An emergency funding plan
5. A retirement funding plan
6. A college funding plan
7. Doing charitable giving
Bibliography
http://www.images.google.com
Foundations of the Future by Dave Ramsey DVD
https://youtu.be/ayMfWFR2DXw
Resource Choices
By Tayla Hamilton
