How to Financially Surive the New Economy

1. How to Financially Surive the New Economy Presented by Jeff Witherspoon Executive Director Consumer Credit Counseling Service, Inc.

2. Who we are… • Non Profit Agency – Community Based • Serving Kansas Since 1985 (28 Years) • Provide Individual Counseling Sessions About Debt Elimination, Credit Issues, Bankruptcy and Housing • Offer Debt Management Plans • Teach Financial Seminars Throughout the State Including Schools • Regulated by the State of Kansas • Member of the Better Business Bureau A+ Rating • Funded Mostly by Grants Including the United Way and the OSBC

3. Scary Statistics • The US had had over 2.7 million bankruptcies and 1.5 million home foreclosures in the last 2 years. • US unemployment is at 7.5 %, (KS is at 5.5) with 20% more people reporting being underemployed. • We have more payday loan locations than McDonalds, Burger Kings and Wendy's combined • The average college student graduates with $28,000 in debt • The average social security check is about $1,230 per month • The US national debt is over $16 trillion dollars. Your share is $52,000. • Real wages have been stagnant for the last 5 years. • What is going on?

4. Money Saving Tips

5. How to Keep More of Your Money at the Grocery Store

6. How to Save More of Your Money at the Grocery Store • Try to only buy items on sale and with a coupon • Do not take the kids to the store with you. • Buy store brands if name brands aren’t cheaper • Shop from a list and stick to it!! • Stock up on non-perishables when you get a good price • Always compare items per pound, per ounce or by unit • Shop at Aldi’s if you have one in your area • Have a “cheap night” dinner once a week-meatless • Take a calculator to the store

7. How to Keep More of Your Money on Your Car

8. How to Keep More of Your Money on your Car • SLOW DOWN!! Aggressive driving uses 30% more gas • Use Consumer Reports before you buy your next car. Look at overall costs of a vehicle, not just price • Properly inflate your tires • Maintain your vehicle according to the schedule in your owners manual and use coupons • Anticipate stoplights and coast to a stop • Try to keep your vehicle for at least 10 years • Have your children ride the bus instead of driving to school if it is available. Make your kids wait to drive

9. How to Keep More of Your Money on Car Insurance

10. How to Keep More of Your Money on Car Insurance • Raise your deductible to at least $500. $1,000 is better • Check prices on combined policies, auto and home. • Compare rates with at least 5 companies • Make sure your credit score is as high as possible • Ask for all discounts available from your insurer • Keep your teenagers from driving as long as possible • If your car is paid for and is worth under $4,000, drop comprehensive and collision coverage • Try to drive less, rates are based on mileage (13,000/yr) • Paying in advance will sometimes get you a discount

11. How to Keep More of Your Money on Phones

12. How to Keep More of Your Money on Telephones • Consider using a prepaid plan such as Virgin Wireless, GO Phone, Tracfone, Net 10 or iwireless • Text as much as possible, it is cheaper than calling • For an inexpensive kid’s plan, consider using Kajeet • For home telephone consider a Voice Over IP system such as Magic Jack , Vonage or Ooma • If you have high speed internet -consider Skype • Bundling services with the same company is usually cheaper

13. Keeping More of Your Money on Utilities

14. Keeping More of Your Money on Utilities • Buy a programmable thermostat • Turn down your water heater to 110 degrees (medium) • Wash your laundry in cold water and air dry towels • Buy a low flow showerhead and toilet to save water • Use a surge protector to shut off electronics at night • Change your furnace filters monthly • Go to Westar.com for great tips • Install an attic fan. • Consider a heat pump

15. The “ Hidden Costs” of Life(The most important expenses you forget) These are Expected expenses that occur at least once a year, not monthly, that people tend to forget Examples: • Car tags and taxes • Certain types of insurances • Anniversaries, birthdays, mother’s and father’s day • Vet costs • And the big one- CHRISTMAS • Back to school expenses • Vacations and travel • Vet bills

16. So how do we plan for these “hidden costs”? First you need to know how much you need to save per month: Hidden Cost: Yearly Amount • Car tags and taxes $ 350 • School Costs $ 680 • Vacation $ 1,170 • Birthdays/Other $ 400 • Christmas $ 1,300 Total $3,600 Big Scary Number Divide by 12 months = $300/per month

17. Two Largest Controllable Expenses CAR 20% Example: Net Income $2,500/ Month From Gross of $3,000 EVERY- THING ELSE $500 30% $1,250 $750 HOUSE

19. Jeff’s Top 10 List • Develop a spending plan you can live with-include spouse and children • Establish an emergency fund of at least $5,000 • Start your retirement plan and make sure you are funding it properly • Only borrow money when necessary and stay within guidelines • Start a savings account for the hidden costs of life • Learn to say NO. To yourself, your children and your spouse • Be healthy-fasting rising cost you are facing • Become financially literate keep studying and set goals • Get out of debt and stay out! • Enjoy life-but on a budget

20. Contact Jeff Witherspoon Executive Director Consumer Credit Counseling Service 316-265-2000 jeffw@kscccs.org