Five steps to increase your bottom line

1. Five steps to increase your bottom line Roxie Rodgers Dinstel Tanana District Extension Home Economist

2. 5 steps • Know your debt • Where does your money go? • Set financial goals • Develop a spending plan • Review

3. Know your debt • Good vs. bad debt • Get the numbers • Snowball your debt

4. Snowball method • $500 on Lowes @ 24%--$25 minimum • $2000 on Visa @16%--$60 minimum • $8000 on ed. Loans @ $200 per mo—5% • $200 to Sears @15%--$20 minimum You can find an additional $50 in your budget, what do you pay first? Calculator at https://powerpay.org

5. Where does your money go? • Take an accounting of your checking account • What about that cash?

6. Set some financial goals • What do you care about? • Ask yourself three questions- • If you had all the money you needed to achieve your dreams, how would you lead your life? • If you learned you had only five years to live, how would you spend the time? • If you had only a week to live, what would be your biggest regrets? Is this how you are spending your money?

7. Set up a spending plan • Gather every financial statement • Record sources of income • Create list of monthly expenses • What’s fixed? What’s variable? • Total income and expenses • Adjust to expenses • Review monthly

8. Review, Review, Review • Check to see how your plan is working • If you get a windfall, think about where it should go rather than spending it.

9. 5 steps • Know your debt • Where does your money go? • Set financial goals • Develop a spending plan • Review

10. Getting a deal? • Aim for purposeful spending • Pinching pennies—What do you do?