Financial questions

All About Savings Fin Lit 102 - Professor Shannah Game

WHY SHOULD YOU SAVE MONEY?

Lots of Way to Save

HAVE THE LIFESTYLE YOU WANT & STILL BE SMART FINANCIALLY

Why Would You Pay Full Price if You Didn’t Have To?

Why Save?

A: You’re going to live longer

B: That means you need more money saved

C: Retirement is going to look different

Why Save?

How Much Do You Need to Have Saved If You Were 21 Now and Wanted to “Retire” at Age 65 with $100,000 in

Annual Income for 30 Years?

Why Save?

$10,137,688!!! 2.5% Inflation

Age 65 Same $100K= $296,383

$50 A MONTH If you stashed $50 a month under your mattress for 30 years, you would end up with $18,000, but if you invested it and earned just 5 percent, you would end up with almost $40,000 – at 8 percent, that figure becomes $68,000.

ALL ABOUT PRIORITIES

Save for YOU

Pay Off Debt

Then Play

Save For YOU First - ER Fund = 3-6 Months of expenses

- High-Yield Savings Account - Ally Bank - Capital One 360 - Synchrony, Marcus

- Bank is earning= .02-.08% - High-Yield= .75-2.5%

Save for Lifestyle Fund - Then save for “retirement” - Lifestyle Fund - IRA ($6000 in 2019) - ROTH IRA ($6000 in 2019) - 401(k) ($19,000 in 2019)

Aim to save 5-20% of your monthly pay for lifestyle (includes matching funds)

The Power of Compounding

Compounding Interest= Good Debt

Compounding Debt= Bad Debt

The Power of Compounding

The Power of Compounding

Paying off Debt

2 Ways to Pay Off Debt:

*Lowest Debt

*Highest Interest Rate

Then Play

Investing

Real Estate

Other Investments

Savings Rules Always Put Savings as FIXED EXPENSE

52- Week Savings Challenge

Know How Much Earning on Savings

Put Savings on Auto Draft

Homework Credit Card Comparison

Due in NEXT Week!