PERSONAL FINANCE &
ACCOUNTING
Megan Hille, accountant,
Pesavento & Pesavento
READ
THE FINE PRINT
PESAVENTO & PESAVENTO LTD CPAs©
65%
PESAVENTO & PESAVENTO LTD CPAs©
LIVE
WITHIN
YOUR
MEANS
MINT.com is free…
But is it, really?
Easy to download bank statement & credit card transactions
PESAVENTO & PESAVENTO LTD CPAs©
PERSONAL BUDGET
FIXED
Housing
Mortgage Payment or Rent
Utilities
Housing Maintenance
Property Insurance
R/E Taxes or Condo Assessmts
Food & Household
Groceries
Household Supplies
DISCRETIONARY
Entertainment & Recreation
Vacation & Travel
Meals Out & Other Entertm't
Clubs & Other Recreation
Charitable Contributions
PESAVENTO & PESAVENTO LTD CPAs©
Per Month
Annual
DR LEO D VINCI
CASH
FLOW
FROM
EARNINGS
YEAR
1/2 Income
- Taxes
40,000
(10,000)
Net to Live on
30,000
1 Income
- Taxes
- Student Debt
- Savings: Em
Net to Live on
PESAVENTO & PESAVENTO LTD CPAs©
110,000
(27,500)
(46,556)
35,944
SAVINGS
STUDENT
LOAN
7% RATE
10 YEAR
BALANCE
300,000
DR DU N GOOD
CASH
FLOW
FROM
EARNINGS
YEAR
1/2 Income
- Taxes
40,000
(10,000)
Net to Live on
30,000
1 Income
273,400
- Taxes
- Student Debt
- Savings: Em
Net to Live on
110,000
(27,500)
(41,556)
(5,000)
35,944
Average
ROI
7%
SAVINGS
STUDENT
LOAN
7% RATE
10 YEAR
BALANCE
300,000
-
276,968
5,000
5,350
DEBITS and CREDITS
• The Agony & the Ecstasy
• Women are more likely to incur
larger credit card debts
• Read those notices they send in
the mail that have very small
print
• Don’t make just minimum
monthly payments
• Have a paydown strategy
PESAVENTO & PESAVENTO LTD CPAs©
25%
PESAVENTO & PESAVENTO LTD CPAs©
emergency fund
CHECKING
SAVINGS
MONEY MARKET
CERTIFICATES OF DEPOSIT
PESAVENTO & PESAVENTO LTD CPAs©
TAX Deferred
vs
TAX Exempt
IRAs
ROTH IRAs
401K PROFIT SHARING PLANS
SEPs
SIMPLEs
10%
PESAVENTO & PESAVENTO LTD CPAs©
THE CASE FOR STARTING EARLY
PESAVENTO & PESAVENTO LTD CPAs©
20% DOWN
BUY vs RENT
TOTAL MONTHLY OUTLAY
LESS THAN 30% OF TOTAL INCOME
PESAVENTO & PESAVENTO LTD CPAs©
Don’t buy
the $80,000
BMW!!
2010 750Li
Cost: $91,775
$6,000 down
$1,089/ month to
lease for 36 months
$52,312 buy out option
Apr = 10.587%! Ouch!
PESAVENTO & PESAVENTO LTD CPAs©
2006 750 Li (27,548 miles)
Cost: $39,998
$0 down 36 month
HEL @ 5%
$1,199 per month
$0 buy out…it’s yours!
Useful Additional Reading
•
•
•
•
•
•
•
•
•
•
Hot (Broke) Messes, Nancy Trejos
The Wealthy Barber, David Chilton
The Richest Man in Babylon, George S. Clason
The Millionaire Next Door, Thomas J. Stanley, PHD & William
D. Danko, PHD
Good to Great, Jim Collins
7 Habits of Highly Effective People, Stephen Covey
The Richest Man Who Ever Lived, Steven K Scott
The Starfish and the Spider, Ori Brafman and Rod Beckstrom
McGill Advisory – Monthly Newsletter
Collier, Sarner & Associates – Bi-Monthly
PESAVENTO & PESAVENTO LTD CPAs©