WHAT ARE YOU THROWING

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WHAT ARE YOU THROWING?

• Motivation
• Websites - Contests
• Credit
• Supporting Education in Illinois
• Compound Interest Friend or Foe
• At Odds with Reality
• Life with a Financial Plan (A Means to an End)

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WHAT ARE YOU THROWING?
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WHAT ARE YOU THROWING?

Draw a picture of what you imagined. Be bold,
but be specific. Turn your dreams into actions!
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WHAT ARE YOU THROWING?

• In 1992 and 2003, the National Assessment of
  Adult Literacy (NAAL), measured the English
  literacy of Americas adults.
• Prose
• Document
• Quantitative

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WHAT ARE YOU THROWING?

• of Adults Scoring at Proficient Level
• 1992 2003
• Prose 15 13
• Document 15 13
• Quantitative 13 13

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WHAT ARE YOU THROWING?

• Money is the 1 cause of divorce in America.
• Money is among the top reasons people commit
  suicide.
• Approximately 75 of Americans live financially
  month to month.
• Less than 10 of high school graduates receive
  any financial education.
• College students average credit card debt rose
  over 46 in the past 8 years.
• Consumer debt and bankruptcies are at an all time
  high.

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WHAT ARE YOU THROWING?

• Common Financial Problems
• Not Planning.
• Overspending.
• Buying with consumer credit.
• Delaying saving for retirement.
• Falling prey to financial sales pitches.
• Not doing your homework.
• Not taking stock of the full situation.
• Making decisions based on emotion.
• Exposing yourself to catastrophic risk.
• Focusing too much on money.

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WHAT ARE YOU THROWING?

• How well prepared do you feel?
• What are you doing to prepare for the next steps?
• Are you keeping your money in the proper
  perspective with the rest of your life?

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WHAT ARE YOU THROWING?

• Homework Assignment
• Order the free Credit Reports.
• Pick up a book about personal finance.

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Life, Liberty, and the Pursuit of Happiness
Financially Speaking
WHAT ARE YOU THROWING?
NBC.com 10. 9. 8. 7.
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WHAT ARE YOU THROWING?

• ABC.com
• 5. Extreme Makeover
• CBS.com
• 4. The Amazing Race
• 3. Big Brother
• 2.

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WHAT ARE YOU THROWING?
FOX.com 1.
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WHAT ARE YOU THROWING?

• What is a FICO Credit Score
• It may be the most important number you dont
  Understand.
• Offense - How to Boost Your Score
• Defense - How to Stay in the Lead

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WHAT ARE YOU THROWING?

• No Brainer Pay bills in full and on time.
• Missing a payment or paying the minimum due each
  month will lower scores.
• Be vigilant on bill paying. It can take a long
  time to recover.

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WHAT ARE YOU THROWING?

• Maintain a low credit utilization level
  (balance-to-limit ratio on credit accounts).
• Maxing out a credit card will send a score
  plummeting.

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WHAT ARE YOU THROWING?

• Time is money.
• Usually better not to close out all those old
  cards.
• Keeping otherwise dormant accounts active will
  help lower the balance-to-limit ratio.

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WHAT ARE YOU THROWING?

• Its better to have an assortment of loans like
  mortgage, car, installment, and revolving loans
  (which seems counterintuitive).
• It appears that individuals versed in a variety
  of credit types pose a lower risk.

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WHAT ARE YOU THROWING?

• Opening a new account will lower your score.
  Hardest time to avoid this is during the holidays
  when retailers offer you discounts for your
  purchases if you open a new account.

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WHAT ARE YOU THROWING?

• Credit scores are based on information in credit
  reports, its important to check all three
  reports to make sure theyre accurate.
• Correcting errors requires patience.
• Take the time to read the entire credit report
  for accuracy.
• Know your rights

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WHAT ARE YOU THROWING?
Mega Millions Lotto - Little Lotto Midday Pick 3
- Midday Pick 4 Evening Pick 3 - Evening Pick
4 Pickn Play Instants 1, 2, 3, 5, 10, 20
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WHAT ARE YOU THROWING?

• Albert Einstein when asked what he considered to
  be the most powerful force in the universe
  answered Compound interest! What you have become
  is the price you paid to get what you used to
  want.
• Is Compound Interest
• Your Friend or Foe?

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WHAT ARE YOU THROWING?

• Compound Interest Can Work Against You
• There are five kinds of debt
• Home Mortgage
• Auto
• Education
• Business
• ____________________

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WHAT ARE YOU THROWING?
Balance of 7,200 _at_ 18.1 Minimum Payment 2 of
the balance or 10 whichever is greater
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WHAT ARE YOU THROWING?
Balance of 7,200 _at_ 18.1 Minimum Payment 2 of
the balance or 10 whichever is greater
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WHAT ARE YOU THROWING?

• Compound Interest can be your friend
• Compound Interest is
• Interest earning interest, earning interest.
• Compound interest example
• 100 _at_10 10 interest
• 110 _at_10 11 interest
• The extra dollar is compound interest.

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WHAT ARE YOU THROWING?
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WHAT ARE YOU THROWING?
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WHAT ARE YOU THROWING?
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WHAT ARE YOU THROWING?
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WHAT ARE YOU THROWING?
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WHAT ARE YOU THROWING?
3 Types of Savings Strategies 3 - Savings/Money
Market Emergency Account - Recovery 6 -
CDs Short Term Account - Replacement 9 -
Stocks and Bonds Long Term Account - Retirement
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WHAT ARE YOU THROWING?
Start saving for all three types simultaneously.
Dont wait to build up one account before
starting on the next account. Time is Money!
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WHAT ARE YOU THROWING?

• Feeln Lucky?
• Empress Casino
• Casino Queen
• Grand Victoria
• Harrahs
• Hollywood Casino
• Jumers Casino
• Par-A-Dice Hotel Casino
• Alton Belle Casino

1,800,000,000.00 in 2005
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WHAT ARE YOU THROWING?
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WHAT ARE YOU THROWING?
What is 8,833,183,947,747.23
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WHAT ARE YOU THROWING?
When NASA first started sending up astronauts,
they quickly discovered that ball-point pens
would not work in zero gravity.  To combat this
problem, NASA scientists spent a decade and 12
billion developing a pen that writes in zero
gravity, upside down, on almost any surface
including glass and at temperatures ranging from
below freezing to over 300 C.  The Russians used
a pencil. Enjoy paying your taxes they're
coming due again
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WHAT ARE YOU THROWING?

• 10 Basic Principles for Creating a Workable
  Spending Plan
• CNNMONEY.COM

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WHAT ARE YOU THROWING?

• Budgets are a necessary evil.
• Creating a budget generally requires three steps.
  
• 3. Use software to save grief.
• 4. Don't drive yourself nuts.
• 5. Watch out for cash leakage.
• 6. Spending beyond your limits is dangerous.
• 7. Beware of luxuries dressed up as necessities.
• 8. Tithe yourself.
• 9. Don't count on windfalls.
• 10. Beware of spending creep.

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WHAT ARE YOU THROWING?

• Pay Cash For Your Next Car
• (Assume current payments of 300/month)
• Timeline
• Now Car Paid Off 3 Years 4
  Years
• 10,800 14,400
• What
• Happens
• Next?
• Plus interest and trade-in value

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WHAT ARE YOU THROWING?

• Net Take Home pay of 46,590 is 3,333
• Savings .. 333
• Giving . 333
• Debt ....... 333
• Prof Services ........ 167
• Insurance ...... 167
• Housing . 833
• Auto/Trans 400
• Household/Personal ... 500
• Entertainment ...... 167
• Misc. .. 100