Personal Finance: The Big Picture

Transcript

1. Personal Finance The BIG Picture More Personal than Finance 6/25/2025 Credit Financial Therapy & Coaching (Leo Credit Financial Coach)
2. The BIG Picture • TOPICS • You are NOT alone • A ‘cure’ can be achieved • Tools Needed: Exercise and Effort • Attitude & Behavior on winning with money • How do you measure ‘Success’? • Leo’s 10 Laws of ‘Financial Relativity’ 6/25/2025 Credit Financial Therapy & Coaching (Leo Credit Financial Coach)
3. You are NOT alone… 6/25/2025 Credit Financial Therapy & Coaching (Leo Credit Financial Coach)
4. You are NOT alone Top Financial Issues for US • Healthcare costs 17% • Too much debt 11% • Low wages 10% • College costs 10% • Cost of housing 9% • Inflation 8% • Retirement savings 6% • Taxes 5% • Unemployment 3% • Social Security 3% • Lack of savings 2% (2017 Gallup Poll – ‘What is most important problem facing your family?”) Taking Our Pulse…. • 77% of Americans are ‘anxious’ about their personal financial situation • 58% of Americans feel that their financial situation is ‘controlling’ their lives • 52% of Americans have difficulty controlling their money related worries • 68% feel that they will not have enough money to retire • 56 % are most worried about keeping up with the cost of living • 45% are most worried about managing debt (Capital One Mind Over Money Survey 2025) Credit Financial Therapy & Coaching (Leo Credit Financial Coach)
5. You are NOT alone… Debt • Average debt per American $66,772 and spends 11.5% of income covering that debt monthly Non -Mortgage Debt (Debt.org 2023) Age 20-30 $12,871 30-40 $26,532 40-50 $27,838 50-60 $23,719 60-70 $16,661 • According to Bankrate (1/2025) 56% of all Americans cannot afford a $1,000 emergency without going into debt Savings Rate US households 1960’s 11.2% 1970’s 12.2% 1980’s 9.8% 1990’s 7.2% 2000’s 4.2% 2010’s 6.2% Jan 2025 3.8% (Bureau of Economic Analysis ) Median Net Worth per person Age 20-30 $7,467 30-40 $35,435 40-50 $126,126 50-60 $290,271 60-70 $446,703 (Forbes.com 7/2024 via Empower. Com) Credit Financial Therapy & Coaching (Leo Credit Financial Coach) 6/25/2025
6. You are NOT alone… What do those numbers mean? Debt • We are in way too much debt and spend way too much of our income feeding those entities we are in debt with. Paying others rather than paying ourselves. • Our economy is driven by our hunger and thirst for buying more products and services– consumer driven economy. Debt tools are just easy ways to sustain that in our daily lives. Savings Rate • Our societal trends of saving less and less over the past 60 years continues. • Now we have an embarrassing 3.8% rate ridiculous if we want to save for retirement or other goals. Median Net Worth per person –suggested NW by age By Age-30 50% of annual salary 40 2x annual salary 50 4x annual salary 60 6x annual salary Based on current median scores we are about 100% behind recommended amounts. (pacesferrywealth.com) Credit Financial Therapy & Coaching (Leo Credit Financial Coach) 6/25/2025
7. A ‘Cure’ can be achieved Medical World • Not all diseases and illnesses can be resolved or cured. • Many injuries even after healing- takes a toll on the body that results in longstanding limitations • Chronic pain from medical conditions is a real thing that limits quality of life Personal Finance World • There is always the potential to stop, reverse and ‘cure’ your affliction • With true understanding of all the components of your ‘financial injury’ – long standing management without pain is achievable resulting in a highly rewarding quality of life Credit Financial Therapy & Coaching (Leo Credit Financial Coach)
8. Tools Needed Exercise ▪ Core Work: Financial Training Basics & Principles • Flexibility: in Budget and Life • Strength Training : Savings muscle development • Cardio: low intensity with long duration focus- the tortoise always wins • Functional—Going beyond the basics with goal oriented training and conditioning Effort • Willingness to see and explore all sides of the issues • Slowing down enough to investigate, analyze and document where you were, where you are and where you want to go • Staying the course and trusting yourself and your partners in the process both in the short and long term Credit Financial Therapy & Coaching (Leo Credit Financial Coach)
9. Attitude’s Influence On Behavior And Ultimately … On Success Your Attitudes Towards… • Entitlement- “I deserve….” • Material items, goods and services and how they make you feel along with its connection to emotions and self esteem. • What others think • What others have in relation to you • Debt • Savings / Investment Behavior / Habits • Underdeveloped organizational habits • Debit card or CC slide vs cash in hand – the ease of use • The time crunch and how that plays a role on decision making, spending and financial monitoring • The excitement / drive to purchase NOW vs waiting. • Despite knowing something is amiss- not altering it due to fear, embarrassment, lack of knowledge or understanding or guilt Credit Financial Therapy & Coaching (Leo Credit Financial Coach)
10. Behavior’s Influence On Success JUST STOP IT! 6/25/2025 Credit Financial Therapy & Coaching (Leo Credit Financial Coach)
11. Measuring ‘Success’ 6/25/2025 Credit Financial Therapy & Coaching (Leo Credit Financial Coach) • How Do You Know Your Winning? • Your goals- are you moving towards them? • Budget Margin (amount that is left after expenses are paid) is it growing? • Debt Reduction • Improved savings rate • Increasing Net Worth.
12. Leo’s Laws of Financial Relativity • Law of Reversibility- (Hope) • Law of Adulthood • Parallel Law of Pain and Net Worth • Foundational Law of Expense • Law of Murphy • Fundamental Law of Expense • Law of Wealth Creation • Law of Saving • Law of Time and Compounding Interest • Laws of Investment 6/25/2025 Credit Financial Therapy & Coaching (Leo Credit Financial Coach)