Office of the Kansas State Treasurer Dennis McKinney

1. Kansas State Treasurer Dennis McKinney Office of theKansas State TreasurerDennis McKinney Working for Kansas Working for You

2. Kansas State Treasurer Dennis McKinney Treasurer Dennis McKinney Public Service - State’s Chief Financial Officer- County Commissioner, Kiowa County- State Representative, Greensburg- House Minority Leader- KS Development Finance AuthorityServes On - Pooled Money Investment Board (PMIB) - Kansas Public Employee Retirement System Board - The Restore America Act Implementation GroupAreas of InterestHas worked to fashion bipartisan, common sense solutions for all Kansans in the areas of education, health care , job creation, job training, aviation industry expansion, and bioscience research.

3. Overview Housekeeping Why Get Organized Financial Records Why Budget Simple Budget Systems Wrap-up/ Q & A

4. Housekeeping E-Resources Evaluation/Feedback Resource Tables

5. Why Get Organized? American Financial Dream “My Money is earning more annually than my Gross income. My money is working hard so I don’t have to; I can retire comfortably.” Any one of us can achieve this. The key is setting goals and getting started!

6. Think about managing your money as managing a business—a business that YOU own! Your goal is to make the money grow; to accumulate it. How well are you doing? I want to encourage you to think about what you need to know, what skills you need to develop, who you need to hire, or what you need to educate yourself on that will get you to the point where you are happy with you and how well you are managing your financial business.Thoughts from “Rich Dad, Poor Dad” by Robert T. Kiyosaki with Sharon L. Lechter, C.P.A.

7. More Reasons to Get Organized Save Time Less Frustration Save Money

8. ORGANIZE FINANCIAL RECORDS GETTING ORGANIZED  The challenge is keeping the categories specific enough to be useful, yet general enough to be practical. Where you put things is less important than making sure you can find it and can return it back to the designated spot.

9. FINANCIAL RECORDS K-State County Extension Website: www.ksre.ksu.edu/library/ - scroll down to grey box & select “Home & Family” on the top right sides Select “Household Management” Select “Organizing Household Records” (L-801) OR “Protecting Your Household Possessions” (L-776) “Our Valuable Records” (MF-685)

10. Safe Deposit Box or Home Safe: Birth Certificates Death Certificates Legal papers: Marriage License Government or court-recorded documents to be kept indefinitely Do not keep original will in safe deposit box. Original with attorney who prepared it or bank/trust company. Keep a copy of the will in the home safe. Funeral/burial instructions: home file or with a family member. Investment certificates; bonds; deeds; mortgage papers; major contracts; list of insurance policies, numbers, and agents; automobile titles; appraisals & household inventory. Copies of income tax returns

11. HOME FILE Items used frequently and can be replaced easily. Have one place to store all important documents saves time & energy. Home business center File cabinet Expandable file folder Desk drawer Sturdy box Plastic crate

12. HOME FILE Insurance policies Guarantees & warranties Education records Monthly, quarterly, or annual financial statements Health records Reference Material Budgeting information Copy of household inventory List of valuable records Evidence of personal property tax payments Canceled checks

13. HOME FILE Asset & property records (keep indefinitely for paper trail) Proof of ownership Capital improvements Tax assessments Purchase & sale records

14. HOME FILE Canceled checks: Retention depends on the reason for keeping them. Three years is recommended unless evidence of a paid installment debt then six years after the debt is paid. Grocery & other receipts can be discarded quickly, after reconciling bank or credit card statements.

15. Sample Filing System County Extension This sample is complex, for the highly detailed person. If the complexity makes your head spin, break it down & make it simple. Develop a system that works for YOU. That you will implement. (Sample from KSRE website)

16. Taxes Keep a separate file for each calendar year for personal tax data: income, transactions (like sale of property or itemized deductions). Note IRAs or pension contributions but put them in a separate folder. Keep copies of Form 1099s and other tax documents related to deductions. (Canceled checks). Keep tax returns indefinitely and any supporting documents for not less than seven years. Big-ticket items purchased keep for tax-related purposes. Indefinitely.

17. Master List Keep a master list or directory of where various records are kept. This is a summary of your property, financial accounts, investments, insurance, & debt information. Make a copy of this Master List. Original in the home safe and one copy in the safe deposit box. “Our Valuable Records” hard copy. Computer/Electronic files: Do NOT store the master list on your computer!!! Store on a CD, USB Drive or other removable storage devise. Do NOT store on the computer. Those records will be there when you discard the computer. This is highly sensitive and confidential information.

18. SIMPLE SYSTEM Sample Expandable File. Master File: List of all assets & important documents Taxes: File folder for each calendar year Banking: Hold receipts until reconcile with statements Stocks, Bonds, & Mutual Funds: Keep all cost information regarding investments to determine cost basis when they are sold (profit/loss). Keep copies of all 1099s; helps determine cost basis for mutual funds. Insurance Policies: Keep the most recent policy with any endorsements or addendum. Old policies keep 3 years just incase there is a lawsuit (homeowner policy).

19. SIMPLE SYSTEM Sample Expandable File. Health Insurance: Records of pending and paid health insurance Credit Cards: Keep loan agreements and any new information the card issuer may send out with monthly statement. Retain purchase slips & billing statements for one year. Staple all charge slips to warranties to retrieve easily if item must be returned. Real Estate Document: Closing papers, settlement sheets, deeds, & titles: copies at home; originals in safe deposit box. Keep canceled checks or receipts for work that increases the cost basis of real estate. Employment Records: Keep information on employee benefits, employee contracts, and copies of W-2s. Reconcile W-2s with Social Security benefit statements.

20. SIMPLE SYSTEM Sample Expandable File. Warranties/Service Contracts/Instruction Booklets: Remember to staple receipts to these. Keep as long as you own the item. Pensions & IRAs: File all annual statements showing contributions, distributions, and any rollovers. Home Inventory: Update annually. “Women & Money Your Personal Finance Guide” by Dee Lee

21. Handy Dandy Financial Notebook 1” Ring Binder Tab or Colored Paper for dividers Sections: Mortgage Net Worth Kids & Money Debt Repayment Plan College Planning School/Continuing Education Retirement Plan Insurance Plan

22. Getting Organized Tips SIMPLIFY Cut down on paper Opt out of credit card offers: optoutprescreen.com Cut down on junk mail: direct marketing assn Consolidate accounts: Reduce the number of credit cards to have fewer accounts to track and easier to manage. Cancel accounts you no longer use Automate when possible if you are comfortable with it. Set up direct deposit; pay bills on-line; set up auto payments to your IRA or other savings. Keep all financial information in one place. It is easier to take charge when you know how to find it! (Drawer, cubby hole, notebook, scan onto computer file—Do what works with your personality. It must be your style or will be too hard to stick to it.

23. Getting Organized Tips SIMPLIFY Review statements and process receipts at least twice each week. It is too hard to stick to it when receipts pile up one week or longer.

24. Why Budget? Financial success is not how much you make but how well you manage it Track/Evaluate Spending Make informed decisions Gives you freedom to make choices Allows you to tell your money where to go—rather than asking it where it went! Our ability to manage money has become our “Adult Report Card”. 55% of Millionaires keep a budget

25. Cash Flow Planning/ Budgeting The first step to getting control of your money is a budget. If you don’t like the word budget, call it your cash flow system. Do some research and decide what system works best with your personality. If you are going to stick with it, you have to have a system that works for YOU.

26. Set Financial Goals When you set goals and focus on achieving them, you make it better. When you focus on your money and growing your assets; you will become more financially secure. Put your money to work for YOU!

27. Budgeting TOP PRIORITIES: Food & Shelter 50% Needs; 20% Savings; Remainder to wants and charity Spend every dollar on paper before the month begins “Zero-based budgeting” Keep a binder with records of monthly budgets, spending, savings, & debt reduction plans. Review progress every three months. Make adjustments as needed. Celebrate the successes and learning steps from previous months.

28. Super Simple Budget If you like to keep it simple, this is the system for you!

30. Electronic Budget Tools Quicken, Quickbooks, Microsoft Money or others that fit your style. The handy thing about electronic software is it will automatically calculate the totals for you! It helps you project goals; evaluate your progress; see where your money is going; help you determine what categories are in balance (% of spending).

31. Tomorrow’s Money www.Kansas.tomorrowsmoney.org On-line Worksheets, budgeting Calculators, Investing, What are people like me doing to get started?

32. Basic Budgeting Tips 1. Regardless of the system that you use, the first thing to do is estimate your monthly income. Total all sources of income. If your income fluctuates, be conservative and underestimate. Do not include bonus or overtime pay you are not sure you will receive in the future.

33. Basic Budgeting Tips 2. List out your basic fixed expenses. Not just the monthly expenses, but include the quarterly, bi-monthly, and annual fixed expenses (prorate: divide proportionately) Be sure to include daily expenses like transportation. Total the amounts.

34. Basic Budgeting Tips 3. Estimate the basic variable expenses that you can control, like food and clothing. Total the amounts. Add the amounts in 2 & 3 and subtract from the total from step 1. If the sum is positive, you are in great shape! You can save or invest your surplus or increase the amounts you spend on discretionary items. If the amount is negative, you will have to cut back on your discretionary spending. You might postpone your vacation or cut down on some dining out, in order to get ahead.

35. More Budgeting Tips Balancing your bank statement each month will help you stay on a budget. Many of us balance it once or twice each week these days. On-line access to account information is especially helpful.

36. Get Organized. Set Goals. Start Budgeting. Evaluate Progress. Enjoy Financial Success! “My Money is earning more annually than my Gross income. My money is working hard so I don’t have to; I can retire comfortably.”

37. Kansas State Treasurer’s Office 900 SW Jackson, Suite 201 Topeka, Kansas 66612-1235 www.KansasStateTreasurer.com Phone (785) 296-3171 Fax (785) 296-7950 Financial Literacy (785) 296-0645 Thank you for the opportunity to serve you. Please let me know how we can be of assistance.