Best Piece of Finance Advice I Received

Financial Fitness 101

By

Steven Boyd Jr.

What's this about?

As a culture money is something that's often not discussed.

Nearly half of Americans say the most challenging topic to discuss with others is personal finances (44%), whereas death (38%), politics (35%), religion (32%), taxes (21%), and personal health (20%) rank as less difficult.

What's this about?

Only a third of adults have some type of financial plan or a simple household budget in place, which means most Americans don’t have the roadmap needed to improve their financial health.

For a quarter of married or partnered adults (25%), financial concerns have had an impact on these relationships. About a third (33%) have difficulty discussing money with their spouse or partner, and a quarter (25%) often have heated discussions with their significant other about money and household finances.

*https://www.wellsfargo.com/about/press/2014/20140220_financial-health/

Who is this guy?

• Independent Software Developer

• Real Estate Investor

• Real Estate Broker

• Graduated 2004, B.S Computer Science

• Philanthropist

Financial Goals

Why have financial goals?

Setting goals gives you long-term vision and short-term motivation. It focuses your acquisition of knowledge, and helps you to organize your time and your resources so that you can make the most of both your time and your resources.

Financial Goals

Please take 3 minutes to write down your financial goals...

Typically goals should be S.M.A.R.T

Specific

Measurable

Attainable

Realistic

Timely

Financial Goals

My financial goals

• Generate enough passive income to live of off 

• Finish paying off house within 5 years                

• Have $5,000 in high interest savings account    

• Make 6 figure salary by the age of 30                  

• Become a Millionaire                                              

So what's the secret?

Earn more then you spend!

There really is no secret. The keys to being successful financially are to earn more then you spend and pay yourself first. This involves three things:

1. Knowing how much you earn.
2. Knowing how much you spend.
3. Paying yourself! Putting money in savings before you do anything else.

Financial Terms

Debt

An amount of money borrowed by one party from another.

Financial Terms

Debt

Please take 3 minutes to write down your monthly debts...

Financial Terms

Income

The income collectively received by all of the individuals in a household.

Financial Terms

Income

Please take 3 minutes to write down your  monthly Income...

Financial Terms

Budget

A finance plan that allocates future personal income towards expenses, savings and debt repayment. Past spending and personal debt are considered when creating a personal budget.

Financial Terms

Asset

An asset can be thought of as something that in the future can generate cash flow, reduce expenses or improve sales.

Financial Terms

Liability

An obligation to pay an amount in money, goods, or services to another party.

Financial Terms

Net Worth

The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure of how much an entity is worth. 

YOur Challenge

What's a fitness discussion without a challenge??

Choose one of the financial goals you created. I challenge you to create a budget that allows you to achieve that goal.

resources

Here are some items that you may find helpful

Mint.com - App used to help with budgets, tracking spending, and net worth.

Bankrate.com - Site that has helpful financial news, tips, and calculators.

Capital One 360 - High interest savings account.

Rich Dad Poor Dad - Book that discusses creating assets and using cash-flow from assets to buy liabilities.

Thank you