MONEY Making it & Managing it

1. MONEYMaking it & Managing it 2008Your Year to Get FINANCIALLY FIT

2. Reality Check “For every dollar earned, the average American family spends $1.22” Debt challenges??? You are not alone!

3. Are you out of control?Symptoms of short-term debt: • More month than money. • No savings for emergencies. • Charging items to delay paying for them. • Continually “rolling” debt from one card to another. • Making consolidation loans to pay off credit card debt.

4. Wait… There’s more! • Does your total debt consume more than 35% of your gross income? • Is your car note greater than 15% of your take home pay? • Have you been late on any payment in the last 6 months? • Do you know how much you owe?

5. It’s time for a CHANGE!

6. Steps you can take: • Confess your Mess! • “Plastic Surgery”! • A written plan. • Pay ‘em down! • Cash only! • WAIT! • Wise financial counsel.

7. Are you ready for the GOOD NEWS???

8. You are the CFO of your Mary Kay organization!

9. How it works in “real time”: You sell $100 of Mary Kay and collect $105.00 Restock with 50% = $50.00 Tax reimbursed with 5% = $5.00 Section 2 is 5% = $5.00 PCP is 5% = $5.00

10. Start with Weekly Expenses! • Gas for business = $30 • MK weekly event = $5 • Loan payment = $120 or $30/week • Cell phone = $30 or $8/week • Internet = $50/mo or $13/week • Total = $86

11. 6 faces per week $100 per face = $600 in new sales. Tax=$30 50% = $300 5% = $ 30 5% = $ 30 60% = $360 + $30 is for restocking. 40% = $240 Less weekly expenses of $86 = $154 Monthly $1200 ws Section 1 $120 for Section 2 $120 for PCP Profit after expenses = $616 for 8-12 hours/week The Mary Kay VariableYou write your own paycheck!

12. Director Expenses • Leadership Expenses • Director Suit • Travel expenses • Copying expenses/newsletter • Meeting Room expenses • Prizes/ Promotions – (No more than 5% of profit you will earn) • Phone • Assistant fees • Office Supplies • Postage • Red Jacket Club dues or other fees

13. Director Income Potential • 50% - Personal sales – new & residual • 13% - Team Building Check • Team Building bonus = $100 per qual.recr. • Unit Development bonus of $300 or $500 for Unit recruits. • 9-13% - Unit commission • Unit Volume bonus of $500+ • Star Consultant Bonus of $300,$400,$500 • Wellness Award Bonus = $750, $1200, or $1800 • $1,000 - Contest bonuses for Cadillac, Higher Circles, New Director bonus opportunities • Value of MK Career Car • Offspring Commissions of 4-6%

14. Suggested Plan for Spending • Personal Sales = Unit & Business expenses • Director Commission = Family Expenses • Bonus Checks = Investment/ Insurance • 13% Recruiting Checks = Personal fun for you & your family, vacations, clothing….

15. Money Mess-UpsA downward spiral

16. Keep Growing

17. The future of your financial security is in Team Building • Month 1 = $1,000 X 4% = $40 • Month 2 = $1,000 X 4% = $40 • Month 3 = $1,000 X 4% = $40 • Month 4 = $1,000 X 4% + $50 = $90 • Month 5 = $1,000 X 9% + $50 = $140 • Do this for a year to reap $1330 Doesn’t include repeat orders or 13%!

18. People who soar, are those who refuse to sit back and wish things would change. Charles R. Swindoll