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Jerry L. Basford

Jerry L. Basford. sa.utah.edu/personalfinance. Top Priorities. Get out of debt. National credit debts is at $970 billion, 50% higher than in 2000. Strike the word “deserve” from your conversations. What you deserve is irrelevant; what you can truly afford is what counts.

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Jerry L. Basford

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  1. Jerry L. Basford sa.utah.edu/personalfinance

  2. Top Priorities • Get out of debt. • National credit debts is at $970 billion, 50% higher than in 2000. • Strike the word “deserve” from your conversations. • What you deserve is irrelevant; what you can truly afford is what counts. • Decide once and for all if you want to indulge or protect your family.

  3. 5 Important Components of Goals (SMART): • Specific • Measurable • Attainable • Realistic • Timely

  4. How Financial Planning Affects Your Cash Flow 1. Budgeting and Tax Planning $ Income 6.Retirement and Estate Planning $ Invest for Retirement Your Cash $ Credit 2. Managing Liquidity (Cash and Credit Management) $ Deposit $ Investments 5. Investing $ Insurance $ Loans $ Spending 3. Managing expenditures for major purchases 4. Income and Asset Protection 7. Products and Service

  5. Good Debt vs. Bad Debt • Debt incurred for consumption is bad debt. Bad Debt = Debt Danger Ratio Annual Income Debt Danger Ratio beyond 25% can spell trouble.

  6. Income Statement

  7. Balance Sheet

  8. Investment Terminology • Bull Market – A random market movement causing an investor to mistake him/herself for a financial genius. • Bear Market - a 6 to 12 month period when the kids get no allowance and adults get no date nights. • P/E Ratio – The percentage of investors wetting their pants as the market keeps crashing. • Broker – What my broker has made me. • Standard & Poor – Your life story in a nutshell. • Financial Planner – A person that actually remembers their wallet when they run to the 7-2-11 for toilet paper and milk. • Market Correction – The day after you buy stocks. • YAHOO – What you yell after selling it to some sucker for $240 a share. • Windows 7 – What you jump out of when you’re the sucker that bought Yahoo for $240 per share.

  9. If you’d invested $1,000 in 1950 • Perfect timing and missed 20 worst months through June 2008 • $800,000 • If you’d missed the 20 best months • $11,500 • Let it ride • $73,000

  10. 10-20-30 Rule • 10% Savings • 20% Debt not including mortgage • 30% Debt including mortgage

  11. 10 Top Finance Tips • Pay yourself first and spend less than you make. • Stick to a budget. • Pay off credit card debt. • Contribute to a retirement plan. • Have a savings plan. • Invest. • Maximize employee benefits. • Review your insurance annually. • Update your will. • Keep good records.

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