Thank you for tune in to Life Plus Up by Kevin Yang Episode 2 “Make Every Penny Counts Part 2” First, I will like to thank all the listeners who have follow and subscribe to our podcast. Your encouragement and support will help me to continue to improve the content of our podcast. I have quite a few mail bag questions from the previous episode and I promise to answer as much as I can. Remember if you found this podcast informative and helpful, please give us a 5 stars rating, it will really help.

Positive News

https://www.bbc.com/news/uk-england-lincolnshire-49828045?intlink_from_url=https://www.bbc.com/news/topics/cz4pr2gdgvgt/inspiring-stories&link_location=live-reporting-story

The 6 steps system of “Make Every Penny Counts” are:

1. How to set goals?

2. Where are the money going?

3. How to create your saving and spending plan?

4. How to Pay off debt?

5. Life Happens, what now?

6. What are your next steps?

Key Terms:

Incomes are all the money that are coming in consistently

Expenses: 

Fixed Expenses are any expense that remains constant from month after month.

Variable expenses are any expense that may varies from month after month

Period Expenses are expenses that come from time to time all throughout the year.

Debts are liabilities that you are paying down on monthly basis.

Savings are considered an outcome as you are taking a part of income to set aside for expenses or future goals.

Savings normally fall into three different types:

1. Save for Emergency

2. Save for Periodic Expenses

3. Save for your goals

Now after you have recorded all your spending in the right categories, let's see if you end with a deficit or surplus. If you have a deficit, then you know you need to adjust your plan by either increase your income or decrease some of your expenses. If you have a surplus, then you know that you shall be more aggressive toward savings

*Remember, your ultimate goal is to achieve a Perfect Balanced or Zero!

Paying off debt

1. Stop Accruing New Debt

2. Snowball method

3. Understanding the effect of interest rates and minimum payments

4. Contact your creditors

5. Refinance or consolidation loans

*Don’t use the paid off cards while you are rebuilding*

Life Happens, what now?

https://www.marketwatch.com/story/half-of-americans-are-just-one-paycheck-away-from-financial-disaster-2019-05-16

Next Step Action Plan Template

 I wil____ by _____

Exp.

I will Set and review my financial goals annually - Long, Mid, and Short term.     By ____ - 20__

If you have any questions, please submit your questions by emailing [email protected] or click on the voice link in the show note.