Where did that money go?

Budgeting your money to retire in 10 to 20 years

  1. Good choices verses bad choices, let’s do the math (add your own examples)
    • Smoking ~ $5,000 each year! [5yrs = 25,000; 10 yrs = 50,000]
    • Drinking one or two drinks ~ $500 each year [5yrs = $2,500; 10 yrs = $5,000]
    • Getting drunk (mortal sin) ~ $5,000 each year min. [5yrs = $25,000; 10 yrs = $50,000]
    • One night at the bar ~ $100, once a week = $5,200/yr [5yrs = $26,000; 10 yrs = $52,000]
    • Eating out once a week ($20) ~ $1,000 each year [5yrs = $5,000; 10 yrs = $10,000]
    • Eating out once a month ($40) ~ $500 each year [5yrs = $2,500; 10yrs = $5,000]
    • Buying lunch/dinner each day ($3) = $1,000 each year [5yrs = 5,000; 10 yrs = 10,000]
    • Starbucks coffee 5 days a week = $1750 each year [5yrs = $8,750; 10 yrs = $17,500]
    • Traffic offenses/legal offenses = $100 to $10,000 each offense, or worse
    • Buying stuff you could live without ~ the rest of your money [or worse if you use credit]!!!
    • Owning a car (car, insurance, taxes each year, gas, repairs ~ $2,000/year minimum[5yrs = $10,000; 10 yrs = $20,000]
    • Nicer car with warranty ~ $6,000 each year minimum [5yrs = $30,000; 10 yrs = $60,000]
    • Cable TV ~ $1,200 each year [5yrs = $6,000; 10 yrs = $12,000]
    • One Smartphone + plan + insurance ~ $1,000 each year [5yrs = 5,000; 10 yrs = 10,000]
    • Internet ~ $700 each year Plus the cost of computers [5yrs = 3,500; 10 yrs = $7,000]
    • Vacation ~ generally $1,000 to $5,000 each year [5 yrs = $5/25,000; 10 yrs = $10/50,000]
    • Miscellaneous $5/ day (what do you spend) ~ $1,800/ year [5 yrs = $9,000; 10 yrs = $18 K)
  2. I made One Million dollars (in 15 years), where did it go???
    • Stuff, stuff, stuff… a SLAVE to society – stop making everyone else rich!
    • Personal examples – cars, coffee, credit cards, house upgrades, riding lawn mower
    • Activity: Pick out the areas that you spend money on and calculate your savings/loss
    • My 6 (internet, smartphone, 2 cars, eating out, 2 drinks, coffee) = $28,000/yr; $140,000/5yrs; $280,000 in just 10 years!!!
  3. Budget – Excel spreadsheet for month/year with 5 and 10 year projections/calculations
    • Handout for group – Budget comparison
    • Activity: One on One – fill out personal budget on premade Excel spreadsheet
    • Manipulate the numbers to see savings/loss

Notes:

Idle hands are the devils handiwork – keep busy and GROW stronger as a person.

Take care of what you have – that saves money/makes money down the road.

Always look 5 and 10 years ahead.

A dollar saved is a dollar earned.

 

GOALS:

  • Own your home (no house payment)
  • Own at least one more property that makes rental income
  • Health Insurance, transportation

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