I. SpendingA. Secret to getting rich?B. If you really really want something what are you willing to give up to get it! If you enjoy it and do it, and cut back somewhere elseC. Notice it is what is important to YOU it depends person to person, but you have to take into account opportunity costs of what you could have spent that money on!D. SAVE more than you SPEND!!!(1) She used 2 examples in class(2) Ex 1: was the richest man in the world and one of the richest men in the world Warren Buffet, these guys both live in the same house, drive a prius etc. Very very frugal remember being frugal doesn't mean cheap means smart!(3) Ex 2: was lottery winners several of them basically they get this lump sum of money don't know how to save it and go out and spend on cars and houses one lady even got a loan for her lottery sum because she wasn't getting paid in lump sum and she wanted her money now ended up being in debt and the financial company who loaned her money never saw a cent!(4) Long story short just because you have it doesn't mean you have to spend it save and spend within “your means” or at very least spend a % of it not all of it!2. CONSCIOUS SPENDING::::look at what you like and prioritize own life and realize what your willing to give up to get up “would you rather have new jacket or retirement house?” little things ADD up!3. She talks about having on X amount of dollars and if you cant afford something change she said “you will be amazed at how we can change when we have too!”a) Where you living to expensive? GET A CHEAPER ONE as simple as that!b) Example if you are paying a car payment of $300 dollars and now your loan is paid off down go blow the $300 each month, instead make the loan payments to YOURSELF save it!c) Same thing with raises, gift certificates, tax refunds! etc. Its money you didn’t have before save it!!!!e) *Tax Refunds: it is your money try and manipulate/ play the figure IRS has to take out of paycheck (more dependents -> hold less) if you are getting back huge tax return giving government free use of your $, up the # of deductibles get to keep a little more of paycheck!f) Just because you have cash “doesn’t have to burn a whole in your pocket” save it for a rainy day you will really want something!!4. Being rigid DOES NOT work long term you can treat yourself take a LITTLE bit of what you want etc. BUT don’t do it with 100% of the money!!!5. You can have multiple accounts divide money up into different accounts you can have a clothing account and a emergency fund and a eating out account etc. whatever categories that you need if it helps you!!E. Save all your change!!!!!!! JUST DO IT!!!! ADDS UP!!!F. Don’t buy things/ pay for things not reading!1. Example: Having a DVR with 8 different shows @ once there are not 8 good shows at once downgrade package2. Example: Magazine subscriptions send something 3 months free and cancel at anytime they bet your lazy and wont cancel usually right, cancel them if you don't read3. Example: Gyms I am going to workout every Monday morning NAAA you are going to just sleep cancel it!!!!4. Bundle Services: ask as see what you are paying she used example of comcast bill just simply call be very friendly and “ask for latest deal” they will lower rate she was paying for mega channel package she didn't even watch!all you gotta do is make a dang phone call dooo itttt!!!!5. O thats only a couple of cents NOOOOOOOOO IT ADDS UP! Not being cheap just being NOT stupid!6. Spend Wiselya) Go less expensive : not without!b) Consider the total cost: printers are super cheap now, but they get you with the inkc) Don't throw away money: utilities turn off lights, don't turn sink on hot every time it doesn't get hot in time anyways! Cell phone plans just get the unlimited or down size to your needs!7. Concentrate on 2 areas spending the most those are where you most likely need to cut back! Instead 5 or 6 beers, have 3 or 4 and saveeee rest!8. **watch out for peer pressure**G. GOT TO PUT MONEY AWAY FOR EMERGENCY!2. Write down everything you spend and you can see where you are really spending DONT CUT OUT REDUCE!3. Set your own priorities not what your neighbors are doing!4. If you got some serious debt issues still!?get your money for that month and get into cash and put into different envelops eating out, spending, *** mandatory saving, and emergencya) You may have too much house downsize for apt. Or too much car get a reasonable ride!!!!!!II. InsurancesA. Cars go up or down in value?1. DOWN cars depreciate (except for classic cars example but cars for the most part depreciate!)B. 2 Types of Car Insurance!1. Collision- protects you if you hit tree, protects your car!a) ** the more expensive of the 2!b) ** it adds up paying more and more for less protection cuz your car is depreciated example you may be paying $300 a month and you mess up mirror its only $20 not worth paying that $300c) LESS VALUABLE AS CAR GETS OLDERd) Only going to give you for what your car is worth NEVER more!!!e) Usually with new car you may want it but as it gets some scratches maybe reconsider!2. Comprehensive- medical side of it insures you, if someone has bills for you if your fault! ***you have to have a minimum according to government varies state by state(1) As you have more assets of your own increase this coverage so they cant come after the more stuff you have!C. Buy insurance you pay a?1. PREMIUM!D. Why do you buy insurance? PROTECTION!!! If bad thing happens you win, if it doesn't then everything is wonderful in your life & the Insurance company wins!E. You get insurance for things that you cannot afford to replace!1. Example: you are not going to get insurance on a skateboard just go and buy another but if a hurricane blows down you million dollar house you better hope you have some insurance!everybody is different some people need it one somethings some don't!F. Costs are so high with medical bills & they amount so quickly so fast everybody should have medical insurance! Somehow/some form!!a) @ least get catastrophic form of coverage it has to be over certain $ and your covered covers you for big medical bill emergencyG. What is the one area under insured? DISABILITY!1. If you are a construction worker hurt legs there goes you livelihood cover that; but if professor hurt legs your fine cover what you need!H. Deductible and Co-pay do what?1. They are trying sharing the risk with the company, they are trying to stop you from going to